Q: Upon whom is Zakaat compulsory?
A: Zakat is compulsory on every sane, mature Muslim who is the owner of Zakātable assets equivalent to the Nisaab value after the passing of a lunar year.
Q: Who is regarded to have Nisaab?
A: A person who has Zakātable assets equivalent to or more than the Nisaab value after deducting liabilities will qualify as a Nisaab holder.
Q: What is Nisaab?
A: The Nisaab value is a threshold. One who possesses Zakātable assets equivalent to the Nisaab amount, will be regarded as a Nisaab holder and will have to check one lunar year later if he still possesses Nisaab amount to pay Zakaat.
Q: What is the value of Nisaab?
A) The Nisaab 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 Nisaab date will expire.
Q: Who can I give Zakaat to?
A: Zakaat 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 Nisaab or a debtor whose liabilities exceed Zakātable and surplus assets.
One cannot give Zakaat to one’s ascendants, (parents, grandparents) descendants, (children, grandchildren) and spouse.
It is permissible to give Zakaat to one’s needy brother or sister, cousins, nephews, nieces , uncles, aunts and all other family members.
Q: Is there Zakaat on one’s house and car?
A: There is no Zakat on personal items which take the form of living necessities e.g. house, clothing, utensils, furniture, car and all household appliances without which life would prove difficult.
Q: Can a husband pay Zakaat on behalf of his wife?
A: The husband can pay his wife’s Zakaat after taking her consent.
Q: Is Zakaat compulsory on personal gold?
A: Zakaat is compulsory on gold & silver that is in one’s ownership for whatever reason and in whichever form.
Q: Is Zakaat binding on cash in a bank account?
A: Zakaat is obligatory on all cash whether in one’s physical possession or in a bank account.
Q: Do I have to pay Zakaat on money I have given to a person as a loan?
A: Zakaat is compulsory on debt receivables arising from forwarding a loan or selling stock on credit. The creditor may choose to pay Zakaat on debts receivable as per his Zakaat year or defer payment until the debt is paid whereupon any Zakaat due for previous years will have to be paid.
Q: I am in debt; do I deduct my debts when calculating Zakaat?
A: Debts are deductible from your Zakatable total.
In the case of long terms debts that are paid by instalment, then only 12 months debt is deductible i.e. the total instalment amount that is owed for one year.
Q: Do I have to pay Zakaat on property investments from which rentals are received?
A: Zakaat is not payable on the actual property. Zakaat is only levied on the income received.
Q: We manufacture goods. Do we have to pay Zakaat 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 their market price.
Q: I have a business, on what value will I calculate Zakaat for my stock?
A: One will pay Zakaat on the current market value of the stock in trade. Market value refers to the price that the consumer (i.e. the public) generally pays to obtain the item regardless of whether one purchased it for a higher price or lower price and regardless of whether one is selling it for a higher price or lower price.
The one who is involved in a retail business will calculate Zakat according to the retail market value of the stocks. The one who is involved in a wholesale business will calculate his Zakat according to the wholesale market value of the stock. The one who sells goods in retail and wholesale will calculate Zakat according to a value that is between the retail and wholesale value. (Jadeed Fiqhi Masail, Vol.1 Pg.71)
Q: I have not paid Zakaat for years. What do I do?
A: If one failed to give Zakaat for previous years, one should estimate how many years were missed and how much one’s nets assets were worth each year and give Zakaat accordingly.
Q:When we give Zakaat to our relatives is it essential to inform them that it is from the Zakaat money? Because when we inform them they are reluctant to take it. Hence please explain.
A: It is not necessary to inform them that it is Zakaat. As long as they are deserving recipients of Zakaat, the Zakaat will be discharged. You should note that you cannot give Zakaat to your ascendants, descendants or spouse.
Q : If I bought a property without a specific intention of reselling and after a few Months or years I decide to sell the property, do I have to now pay Zakaat on the property?
A. In principle, property purchased with the specific intention to resell at the time of purchase is Zakaatable as the property will be considered as stock in trade.However, if there was no specific intention to resell the property at the time of purchase, Zakaat will only be payable if the property is sold on the proceeds received from the sale.
Q: Salaams. If my child who is 1 year old was given a gift of a Kruger coin by his grandparents, then who pays the Zakaat on this? The non baaligh child or his parent?
A: If your child received a Kruger coin as a gift, the Kruger coin belongs to your child. Hence, Zakaat is not obligatory on them as they are not yet mature (Baaligh).Therefore, your child will not have to discharge Zakaat and neither will you have to (on their behalf for the Kruger coin) until they become mature (Baaligh) and fulfil the criteria of discharging Zakaat.
Jamiatul Ulama (KZN) Fatwa Department
Council of Muslim Theologians
223 Alpine Road, Overport
Durban, South Africa
Tel : +27 (0) 31 2077099
Fax : +27(0) 31 2074163
Website : www.jamiat.org.za