1. Zakat is a compulsory tax
levied by an Islamic state on
the members of the Muslim
community
Zakat” means to make
something increase or grow.
Zakat is a reminder to
owners of wealth and wage
earners that this is a
religious obligation and a
social responsibility.
The word Zakat itself shows
that wealth which is not
spent judiciously and wisely
on one’s self or others,
generates evil in the society.
Introduction and definition of zakat
2. Criteria for payment of Zakat
An adult sane Muslim
On property which is absolutely owned
When wealth reaches Nisab.
Purpose of business.
Payment on loans given to others
Shares, cash savings and pensions
3. 1. Islam.
2. Wise.
3. Genuinely owned-owner’s asset or asset free of claims by others.
4. Productive assets -capable of generating profit or revenue and net cash
inflows:Cash in hand,Cash at bank,Stocks, shares, bonds, and
securities,Inventories of finished goods, Rentals, Net Receivables.
5. Surplus assets- its value must equal to or above a minimum zakat-
able(nisab).
6. Full year’s possession (Haul).
7. Fullfil the nisab- a given quantity for the period of an entire year.
CONDITIONS FOR ZAKAT
4. THE 8 BENEFICIARIES ZAKAH (ASNAF)
THE POOR THE NEEDY
THE
ADMINISTRATION
OF ZAKAT (AMIL):
those that distribute
the wealth to the
poor and the needy.
6. FOR THE CAUSE OF
ALLAH (FISABILILLAH)
THOSE WHO ARE
STRANDED DURING A
JOURNEY (TRAVELLERS)
(IBNU SABIL)
7. 1. The Needy/ Poor/Fakir / Fuqara’ - Income is less than 50 percent
of daily needs.
2. Miskin (Masakin) - Just sufficient to finance basic needs.
3. Amil - The one with authority / responsible to collect zakat.
4. Muallaf - Individual who convert to become a Muslim.
5. Fisabilillah - Individual involved with activities to defend and
strengthen Islam.
6. Ibnu Sabil - Refugees, homeless, Orphan muslims.
7. Gharmin – those that are in debt and unable to settle them.
8. Riqab – Slaves that has been released from their owners.
People Entitled to Receive Zakat / Benefeciaries of Zakat
8. ZAKAH EXEMPTION
Non-productive
fixed assets Non-current
assets
A non Muslim
living in an
Islamic state
A slave is not
allowed to pay
zakah
People that
own wealth
below the
lower limit
9. BASIS OF THE ASSETS IN ZAKAH
Having Full
Possession
Real or Assumed
Growth
Fulfilling the
Nisab (Minimum
Amount Liable To
Zakah)
Fulfilling One’s
Basic Needs
Forbidding Twice
Payment of Zakah
in the Same Year
11. THE OBLIGATORY ASPECT OF ZAKAH IN BUSINESS
TO BE A
MUSLIM
FOR FREEDOM
FOR VALID
OWNERSHIP
TO REACH
THE HAUL
TO REACH
THE NISAB
12. The Importance of Zakat
It is One of the five pillars of Islam
1. Syahadah - is a statement professing monotheism and accepting
Muhammad as God's messenger.
2. Solat - Praying 5 times a day
3. ZAKAT- is the practice of charitable giving by Muslims based on
accumulated wealth
4. Sawm / Siyam – Fasting in the month of Ramadhan
5. Hajj - is a pilgrimage that occurs during the Islamic month of Dhu al-
Hijjah to the holy city of Mecca,
To encourage donation
As a means to express our appreciation to Allah
To establish sympathy and avoid jealousy
13. To worship and thank Allah for all His bounties to
mankind
•Al-Baqarah: 267 “Oh ye believe! Give of the good
things which ye have (honorably earned). And of the
fruits of the earth which we have produced for you..”
Assist the poor and the needy
•Al-Dzariyat: 19 “and their wealth and possessions
(was remembered) the right of the (needy)..”
•Act as a mechanism to distribute wealth
Purify one’s heart and self from being stingy
•Al-Taubah: 103 “Of their goods take alms. That so
thou mightiest purify and sanctify them..”
14. Zakat from the perspective of the Islamic Law
Zakat is an important duty for Muslims as mentioned in the Al-Quran: "Keep up prayer
and pay zakat".
While prayer is a physical form of worshipping Allah, zakat is a material form.
Zakat is compulsory :
"Take from their wealth charity (alms) to purify them and to cleanse them thereby, and
pray for them."
[At-Taubah: 103]
15. Dalil of zakat
It is considered to be a personal responsibility for Muslims to ease economic hardship for others
and eliminate inequality.
It is obligatory for all who are able to do so.
Growth (in goodness) or increase and purifying of one’s wealth
IN HADITH:
In one hadith from Bukhari, Abu Hurairah (r.a.) narrated that the Prophet SAW said:
"Whoever is made wealthy by Almighty Allah and does not pay the zakat of his
wealth, then on the Day of Resurrection his wealth will be made like a bald-headed
poisonous male snake with two black spots over the eyes. The snake will encircle his neck
and bite his cheeks and say, 'I am your wealth, I am your treasure'. "
16. Like prayer, Zakat is from amongst the basic principles of Islam and not paying your Zakat is a
major sin.
Allah (saw) warns those who refuse to pay the Zakat:
Allah (SWT) tells us in the Quran:
“They who hoard up gold and silver and spend them not in the way of Allah,
Announce to them a painful torment O Muhammad (saw) On the day when it
all will be heated in the fire of hell, and their foreheads and their flanks and
their backs will be branded with it, (and it will be said to them). This is the
treasure which you hoarded for yourself, now taste of what you used to
hoard.” (At Taubah:34-35)
17. The first Muslim Caliph Abu Bakr As-Siddiq (r.a.),
said:
"By Allah (SWT), if they refuse to pay me (even) a bridle which they used to pay the
Messenger of Allah (pbuh), then I will fight them because of their refusal." [Muslim]
In another hadith by Abu Dawud, the prophet s.a.w.
said:
“Allah has made zakat obligatory simply to purify your remaining property, and He
made inheritances obligatory that they might come to those who survive you.”
