clarify your zakat doubts
a knowledgeable person will make better decisions
Below FAQ's are brief and for guidance only and based on the HANAFI Mazhab
If your doubts persist please contact your local/trusted Imam for an in-depth explanation
Zakat is compulsory on every sane, mature Muslim who is owner of Zakatable assets equivalent to the Nisab after a passing of a lunar year.
A person who has Zakatable assets equivalent to or more than the Nisab after deducting liabilities will qualify as a Nisab holder.
The Nisab is a threshold. One who possesses Zakatable assets equivalent to the Nisab amount, will be regarded as a Nisab holder and will have to check one lunar year later if he still possesses nisab amount to pay Zakat.
The Nisab is the value of 612.36 grams of silver.
One will have toanswer_1 give 2.5% of one's total net assets.
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 Nisab date will expire.
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.
Intention at the time of giving Zakat is a pre-requisite for the valid discharge of Zakat.
It is permissible to discharge somebody else's Zakat from one's own wealth on condition one has approval and acknowledgement from the other party.
Zakat is compulsory on gold & silver in one's ownership for whatever reason and whichever form.
Zakat is obligatory on all cash whether in one's physical possession or in a bank account.
Zakat 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.
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.
Zakat is payable on the beneficiary of Working Tax Credit, Child Tax Credit, Child benefits and all other forms of social security allowances.
Zakat is compulsory on one's business stock and will be calculated according to the retail price of the goods. There is no zakat upon the fixed assets in a business.
The value of shares purchased to resell is Zakatable.
For businesses involved in manufacturing goods, all finished goods must be valued at their sale price, and all unfinished goods at market price.
If one failed to give Zakat for previous years, one should estimate how many years were missed and how much one's nets assets were each year and give Zakat accordingly.
Zakat can only be given to either a needy person who does not own in excess of his personal needs any surplus asset that is equal to the value of Nisab or a debtor whose liabilities exceed Zakatable and surplus assets.
Zakat 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 Zakat to one's parents, grandparents, children or spouse.
It is permissible to give Zakat to one's needy brother or sister.
"FAQ's courtesy of www.darulfiqh.com"