Classification of zakat
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Zakat is divided into two main categories

1. - Zakat of al-Fitr (i.e. the breaking of the fast at the end ofRamadan. It is also referred to as the Zakat of the body.

2. - Zakat of wealth.

Zakat of al-Fitr:
Muhammad sallallahu alaihi wasallam ordered that this kind of charity should be observed inthe same year in which the fasting during Ramadan was imposed.A day, or two days preceding al-Fitr the Prophet addressed theMuslims saying:"Give for charity, be it corn or dates; give according to what youare, free or slave, young or old."It is also related by al-Bukhari and Muslim that the Prophet(Prayer and God's Peace be upon him) imposed the charity of al-Fitrafter Ramadan, a measure of dates or barley on all Muslims, slave orfree, young or old, male or female.

THOSE WHO HAVE TO PRACTISE ZAKAT AL-FITR

Zakat al-Fitr does not become nullified if one is a Muslim,provided the Muslim is free and possesses the amount of Zakat aftercovering the expenses of food for himself, and those whom he feedsfor a day and a night, together with the expenditure which he incursin relation to wife, son, servants and those whom he has to providefor such as parents and others.
Its amount:
The amount is either a measure of dates, or barley, or rice, orcorn, or anything else edible that can be used for food, from eachindividual.If Zakat is to consist of wheat it is half that for each person. A manmust consciously intend Zakat, since without intent it is not valid.Zakat in cash varies in estimation according to the current valueof money at the time of Zakat.The Hanafi sect allows the person to pay in cash for Zakat, indeed,it considers that this is preferable because it is more useful to thepoor, since they know what they need most - it might be food and itmight be medicine.

The time to practise Zakat al-Fitr:

All the learned have agreed that the time to practise it is the end ofRamadan. They disagree upon the time of day, whether it is to besunset on the day preceding al Fitr or dawn on the day of the feast.One thing is certain, and that is al-Zakat has to be fulfilled beforegoing out to the prayers.Ibn Omar said : "The Prophet ordered us to fulfil Zakat al-Fitrbefore going out to prayers'.It is also permitted to offer it a day or two before that date: Otherseven say that one is allowed to do so from the beginning of Ramadan.It is definitely not permitted after the day of the feast. It is then notZakat but Sadaqa (alms).It is related, through Ibn Abbas, that Prophet Muhammad (Prayersand God's Peace be upon him) ordered Zakat al-Fitr as purificationfor the one who fasts from vain things, and as a help and sustenanceto the poor. He who practises it before the prayer, his Zakat isacceptable, but for he who fulfils it after the prayer it is simply Sadaqa(alms-giving).Zakat al-Fitr does not become nullified if one is late in fulfilling it -it is still a duty for all Muslims.A man must fulfil it somehow, or else his account will be settled inrelation to it on the day when no repentance is accepted and nomoney is available.

Use of Zakat al-Fitr:

It has many uses and benefits for those who fulfill it and for societyas a whole.The one who fulfills it is purified through it from that which mighthave spoiled his fasting, such as vain acts or unseemly speech whichhe is required to abstain from, as he abstains from eating or drinking,or lusts of the flesh - andthere is hardly a person who is not open tothese - so that Zakat is a purification to those who fast. Perhaps that iswhat is meant by the saying of Muhammad:"Fasting in the month of Ramadan lies suspended between theearth and Heaven. It is only-raised (to Heaven) by Zakat of al-Fitr"It is also a duty binding upon every single person falling under theguidance of the faster, young or old, free or slave. It is thus the Zakatof the body, as it is the Zakat of al-Fitr. From this deduction, comesthe hope that to God Almighty it is a means of preserving the bodies ofall who fulfill it, and of purifying and improving their bodiesThat as what is meant by His words"Of their good take alms, so that you may purify and improve themthereby".As for benefits to society, we all realise that it (al Zakat) providesfor the poor in a way that makes humility unnecessary on that day.That is explained by the Prophet's saying"Relieve them of the necessity of going around (looking for alms) onthis day."Another benefit to society is that all, poor and rich alike, feel thegeneral joy of that day. It is not for the rich only.Also, the poor person who receives alms feels rich on that day byreceiving them. He, therefore, seeks ways of practising charityhimself and that day he feels that he too is a giver and takes delight ingiving.He becomes accustomed to the feeling, albeit rare, that he is one todo good and not to have good done to him.

Its condition :

To fulfil this kind of Zakat a person must be:
1) A Muslim, for Zakat is not a duty for the non -Muslim.
2) Free, for slaves are not supposed to pay it.
3) To have reached majority. It is not binding upon the minor ; it isbinding upon his wealth and it is the duty of his guardian to extract itfrom his (the minor's) wealth.
4) Sane, for Zakat is not a duty for the insane. It is, nevertheless,the duty of his guardian to produce it from the person's wealth. It isthus enforceable upon the wealth of the insane.
5) He must have the total (in terms of wealth) which entailspayment of Zakat.
6) This total should have been his for specified time in order tojustify Zakat i.e. for one year or 12 lunar months.

This does not apply to produce or fruits of the land.The time tofulfill the Zakat on these is the time of harvesting, when the fruits andproduce are fully ripe. This is specified in the Quran:"Eat of their fruit in their season, but render the dues! that areproper on the day that the harvest is gathered".

KINDS OF WEALTH ON WHICH AI-ZAKAT IS LEVIED

Livestock, such as camels, cows, buffaloes, sheep and goats. Otherkinds of livestock are not eligible for Zakat unless they are used asmerchandise; then the Zakat for trade applies.Zakat is imposed on the above animals on condition that they grazethe common pasture. They are considered inexpensive and alsouseful, for they breed, their flesh is edible and their milk is drunk.They do not cost the person who owns them much.On the other hand, if the animal is stall-bred then no Zakat is duebecause of the expense and effort involved in feeding it. But in thecase of the working animal, since it produces by its work in ploughingor irrigation, then Zakat is due - it is as if Zakat on agriculturalproduce were to include working animals.

Zakat of Gold and Silver:

Zakat is imposed on gold and silver. If a person owns 20 mithqalof gold he is liable to Zakat.The mithqal equals a dinar which in turn equals 4.25 gms.The amount of gold liable to Zakat is 85 gms. Zakat for this amountis 2.5% of its value.As for silver, `zakat starts at 200 dirhams, which equal five ouncesor 591 gms of silver. `zakat paid for this amount is also 2 .5%.There is one condition for Zakat of gold and silver the ownershould have the above mentioned amounts for a year, at least. It isexempt from Zakat if it is in the shape of Jewelry used forornamentation, except with the Hanafi sect. The amount for the Zakatof gold and silver is a quarter of the tenth ; that is 2.5% of its value.This tax also includes any dues from trade. It is then one quarterof a tenth of the capital used in trade.

THE UTILISATION OF ZAKAT

The Quran has defined the persons to receive alms in the followingwords:"Alms are for the poor and the needy and those employed toadminister the (funds), for those whose hearts have been recentlyreconciled, and those in slavery, and in the debt, and in the way ofGod, and for the wayfarer".The poor (al-fuqara) are those who do not own enough to be liableto Zakat and those who do not have enough to carry them through theyear.As for the needy (al-masa kin), there is a difference of opinion asto whether they or the poor `(al-fuqara) are worse off. The needy it issaid, are those who own nothing and owing to age or sickness cannotearn anything.those employed to administer the funds are the persons appointedby the head of government. Amongst them are labourers and publicofficials.All these are paid according to their respective work.Those whose hearts have been recently reconciled were the richchiefs of tribes whom the head of state thought it necessary to placatefor the good of Islam. The Prophet (God's Prayer and Peace be uponhim) distributed amongst their like some alms and booty in order toensure special aims in spreading Islam or to prevent any harm beingdone to the faithful. They were exempt from Zakat at the time of AbuBakr, on the advice of Omar, when he gave him to understand that theconcessions granted to them were temporary, in accordance with theneeds of Islam ; and God strengthened Islam and there was no need toplacate them. Some of `the learned think that it is the right of thehead of state to use placator measures till the Day of Judgement; andthat if he considers it of use to spend some of Zakat upon those whosehearts are reconciled, he is allowed to do this in the service of Islam.Those in slavery - that is the freeing of the slave and the raising oftheir status - although slavery no longer exists.Those in debt are those who have been weighed down by theirdebts and they cannot pay - provided that the cause of debt is not anyvice, or mishandling of money.In the way of God means those who fight on a raid or in the HolyWar in the way of God; and similarly all that is beneficial to God'sreligion.The way-farer is the stranger who is far away from his home.

What is the nisab?

To be liable for zakat, one's wealth must amount to more than a threshold figure, termed the "nisab". To determine the nisab, the are two measures: either gold or silver. • Gold: The nisab by the gold standard is 3 ounces of gold (87.48 grammes) or its cash equivalent. This is approximately £650 or $926.40, but will vary with the current market value of gold. For the latest prices, refer to the Online Zakat Calculator • Silver: The nisab by the silver standard is 21 ounces of silver (612.36 grammes) or its equivalent in cash. This is approximately £70 or $130.

The Value of the Nisab

The value of the nisab is calculated in dinar coins and dirham coins. The relation between 20 dinars and 200 dirhams which is part of the definition of nisab reflects that the exchange value between the dinar and the dirham in the early days of Islam was 1/10. In later times the exchange between the two Sharia coins changed according to market values. Exchange values of 1/11 and 1/12 are seen in early fiqh literature. This exchange rate has changed even more in the last few centuries. The change in exchange rate meant that in later times 20 dinars became more expensive in market value than 200 dirhams. Yet the definition of nisab has not been ever altered throughout Islamic history and therefore a choice is created between the value of 20 dinar or the value of 200 dirhams. Both values are accepted in Shariah, therefore everyone could accept anyone of them.
| |NISAB (read as value of) |Zakat Rates |
|PERSONAL WEALTH |3 US OZ (PURE GOLD) |2.5% |
|BUSINESS WEALTH |3 US OZ (PURE GOLD) | |
|Trade Goods | |2.5% CURRENT WHOLESALE |
|Exploited Assets | |2.5% NET INCOME |
|AGRICULTURAL PRODUCE |653 KG/1439 LBS | |
|Crops (Irrigated) | |5% OF HARVEST |
|Crops (non-irrigated) | |10% OF HARVEST |
|LIVESTOCK |OVINE: 40 |See Special Zakat Rate Table |
| |BOVINE: 30 | |
|TREASURE TROVES |3 US OZ (PURE GOLD) |20% |