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Zakaat Q&A

Question and Answer:
Q. I have a diamond necklace which my husband gave me as a gift. Do I have to pay Zakaat on it ?
 
(Question published as received)
 
 
 
A. No. There is no Zakaat on precious stones or metals besides gold and silver unless they have been purchased with the intention of resale. If your diamond necklace if for personal use, there is no Zakaat on the diamond itself. However, if the necklace is of gold or silver, Zakaat will have to be paid on the gold or silver content only.
Q. Ramadaan will be soon and I usually calculate my Zakaat in Ramadaan. I would like to know how to calculate in on a property. I have invested 200 000 in a property as a shareholder. From this I collect a rental every month. How do I calculate Zakaat on this property?
 
(Query published as received)
 
 
A.  There is no Zakaat due on property that has not been purchased with the intention of resale (trade). In your situation, since you have purchased a share of property as an investment and not for resale, there is no Zakaat due on your share of the property itself. However, the  dividends that you receive will be subject to Zakaat if you have saved up these funds.
 
Whatever you have saved up from these dividends will be subject to Zakaat like the rest of your wealth (2.5%) on your due date for Zakaat.
 
If you have used up all the  funds from these dividends before the due date of Zakaat, there is no Zakaat on these funds. 

Question and Answer:

Q. Zakaat has been due to me in Ramadaan. I have been giving Zakaat on R 20 000.One month ago i have recieved R10 000. How much should I pay this year in Ramadaan.

 

(Query published as received)

 

A. If you already possess the Nisaab amount, the amount you receive during the year will be added to your wealth subject to Zakaat even though one complete year has not yet passed on the recently received funds. Therefore, if you possessed R20 000 from last Ramadaan and you now received another R10 000 and you have this amount in your possession on the due date of Zakaat, you will pay Zakaat on R30 000. (Tabyinul Haqa’iq, Vol: 1, Pg: 272

 Can Zakaat be given to Shia families?

 

(Query published as received)

 

A. Zakaat can only be given to Muslims. Shias who believe in the Qur’an being incomplete and slander Aaishah (Radiyallahu Anha) are not Muslims and cannot be given Zakaat.

 

Question and Answer:

  1.  Is it permissible for a person who is giving ZAKAT for the marriage of a girl to attend the dinner at the girls wedding ?

 

 

(Query published as received)

   Yes. It is permissible. Once Zakaat funds have been given to eligible recipients of Zakaat, it becomes Halaal money for them and is no longer considered as Zakaat. Hence if they now feed you from that money, it will be permissible to consume.

Q: Upon whom is Zakāt compulsory?

A: Zakat is compulsory on every sane, mature Muslim who is owner of Zakātable assets equivalent to the Nisab after a passing of a lunar year.

Q: Who is regarded to have nisab?

A: A person who has Zakātable assets equivalent to or more than the Nisāb after deducting liabilities will qualify as a Nisāb holder.

Q: What is Nisāb?

A: The Nisāb is a threshold. One who possesses Zakātable assets equivalent to the Nisāb amount, will be regarded as a Nisāb holder and will have to check one lunar year later if he still possesses nisab amount to pay Zakāt.

Q: What is the value of Nisāb?

A: The Nisāb is the value of 612.36 grams of silver.

Q: How much will I have to pay?

A: One will have to give 2.5% of one’s total net assets.

Q: What if one’s wealth fluctuates during the course of the year?

A: It makes no difference whether one’s wealth increases or decreases during the course of the year. Only if one becomes insolvent then one’s Nisāb date will expire.

Q: Is there Zakāt on one’s house and car?

A: There is no Zakat on personal items which take the form of living necessity. e.g. a house, clothes, utensils, furniture, car and all household appliances without which life would fall into difficulty etc.

Q: Is intention necessary?

A: Intention at the time of giving Zakāt is a pre-requisite for the valid discharge of Zakāt.

Q: Can a husband pay Zakāt on behalf of his wife?

A: It is permissible to discharge somebody else’s Zakāt from one’s own wealth on condition one has approval and acknowledgement from the other party.

Q: Is Zakāt compulsory on personal gold?

A: Zakāt is compulsory on gold & silver in one’s ownership for whatever reason and whichever form.

Q: Is Zakāt binding on cash in a bank account?

A: Zakāt is obligatory on all cash whether in one’s physical possession or in a bank account.

Q: Do I have to pay Zakāt on money I have given to a brother as a loan?

A: Zakāt is compulsory on debt receivables arising from forwarding a loan or selling stock on credit. The total outstanding balance will be added to one’s gross assets.

Q: I am in debt; do I deduct my debts when calculating Zakāt?

A: Debts are deductible from your Zakatable total if they are to be repaid in full within the next 12 months.

Debts not repayable at all in the next 12 months are NOT deductible.

If debts are payable by instalment, then 12 months debt is deductible.

Q: Is Zakāt compulsory on social security allowances?

A: Zakāt is payable on the beneficiary of Working Tax Credit, Child Tax Credit, Child benefits and all other forms of social security allowances.

Q: I have a business, do I have to pay Zakāt on anything?

A: Zakāt is compulsory on one’s business stock and will be calculated according to the cost price of the goods. There is no zakat upon the fixed assets in a business.

Q: Do I have to pay Zakāt on shares?

A: The value of shares purchased to resell is Zakātable.

Q: We manufacture goods. Do we have to pay Zakāt on those goods?

A: For businesses involved in manufacturing goods, all finished goods must be valued at their sale price, and all unfinished goods at market price.

Q: I have not paid Zakāt for years. What do I do?

A: If one failed to give Zakāt for previous years, one should estimate how many years were missed and how much one’s nets assets were each year and give Zakāt accordingly.

Q: Who can I give Zakāt to?

A: Zakāt can only be given to either a needy Muslim who does not own in excess of his personal needs any surplus asset that is equal to the value of Nisāb or a debtor whose liabilities exceed Zakātable and surplus assets.

Zakāt cannot be given to construction projects, rich people, non-Muslims or the descendants of ‘Abbas, Harith, Ja’far and Aqeel Radhiallahu anhum.

One cannot give Zakāt to one’s parents, grandparents, children or spouse.

It is permissible to give Zakāt to one’s needy brother or sister.

Q. Ramadaan will be soon and I usually calculate my Zakaat in Ramadaan. I would like to know how to calculate in on a property. I have invested 200 000 in a property as a shareholder. From this I collect a rental every month. How do I calculate Zakaat on this property?

A. There is no Zakaat due on property that has not been purchased with the intention of resale (trade). In your situation, since you have purchased a share of the property as an investment and not for resale, there is no Zakaat due on your share of the property itself. However, the dividends that you receive will be subject to Zakaat if you have accumulated these funds.

Whatever you have saved up from these dividends will be subject to Zakaat like the rest of your wealth (2.5%) on your due date for Zakaat.

If you have used up all the funds from these dividends before the due date of Zakaat, there is no Zakaat on these funds.

Q. Can Zakaat be distributed in alternative forms?, ie blankets, food, accessories that is required by the deserving Muslims.

(Query published as received)

A. Zakaat may be discharged in this way. The market value of the goods would be used to determine the value of the goods for Zakaat purposes..

Question:
I was divorced recently. All my belongings (clothes, jewellery, household materials, etc.,) are still with my ex-husband and his family. We never asked them to return my belongings nor did they tell us to take it back. I have nearly 70 gms of gold. My question is that all (nearly 70gms of gold) jewellery is with my ex husbands family. I am not using this jewellery and it is not in my possession. Will I be eligible for zakat on that jewellery which is not in my possession?

Answer:
In the Name of Allah, the Most Gracious, the Most Merciful.
As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.
If you are the rightful owner of the gold ornaments, then all the responsibilities of the ownership of the gold ornaments will be directed to you.
Not having physical ownership of the gold ornaments does not absolve you from the Shar’ee responsibility of the gold ornaments.
Accordingly, you will have to calculate Zakaat on the gold ornaments by your in-laws as per your personal situation.

The Nisaab of Zakaat for gold is 20 Mithqals or 87.479 grams. The Nisaab of gold is 200 Dirhams or 612.36 grams.

You state that you have 70 grams of gold. If you do possess other pieces of gold jewellery, you should add these to the 70 grams of gold and calculate whether the full amount is equivalent or lesser than the Nisaab amount. If the total amount of gold is equal or more than the Nisaab amount, one will be obligated to pay Zakaat on the gold.

If you posses silver, you should join the silver to the gold and if the value of them combined reaches the Nisaab of either gold or silver, then Zakaat is obligatory.

For example, if one had 500 grams of silver throughout the year and then acquires 75 grams of gold during the year, then the value of the gold must be calculated and combined with the silver in order to determine whether this combined value reaches the Nisaab.
In principle, if the percentage of gold in the ornaments is more than the alloy, then the entire ornaments will be considered as Zakaatable. The total value of the gold ornaments will then be added to your Zakaatable assets when calculating Zakaat. However, if the total amount of gold in the ornaments do not exceed the amount of alloy, then the entire ornament would not be Zakatable. Rather, the value of the actual gold will be added to the total Zakatable assets when calculating Zakaat.
Kindly refer to the following table for more details on calculating Zakaat:

Personal Wealth Amounts:
1. Amount of Cash and Savings at home or in the bank R 10,000
2. Current value of any gold and silver jewelry, coins, utensils etc R 5,000
3. Value of assets and merchandise for trade R 20,000
4. Receivables and loaned amounts to others R 5,000
Total these amounts here: R 40,000
Amount Debts to be paid: R 20,000
Subtract the total amount of debts for the year from the above amount.
Nett Total of Zakatable Wealth R 20,000
if the net total of Zakatable Wealth is more than the Nisab amount then…
Multiply the nett total by 2.5% (nett amount x 0.025) R 500

 

 

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