They are of eight categories, as Allah says: “The alms are only for the poor and the needy, and those who collect them, and those whose hearts are to be reconciled, and to free the captives and the debtors, and for the cause of Allah, and (for) the wayfarers; a duty imposed by Allah. Allah is knower, Wise.”
Zakat is one of the five pillars of Islam, and it is an obligation and duty of every Muslim who fulfills its conditions, and he must pay it to those who deserve it. Allah mentioned zakat in 80 verses in the Noble Quran such as: "Those who believe and do good works, establish the prayers and pay the obligatory charity, will be rewarded by their Lord and will have nothing to fear or to regret."
Zakat in Islam is the first system known to mankind to achieve care for the needy and social justice among members of society, where part of the wealth of the rich is redistributed to the poor and needy. Zakat purifies the money and soul of the zakat giver from selfishness, greed, miserliness, and indifference to the suffering of others. Zakat purifies the soul of the poor or needy from jealousy, envy, and hatred toward wealthy owners. Zakat leads to an increase in the cohesion of society and the solidarity of its members, and the elimination of poverty and related social, economic, and moral problems if Zakat funds are used and disbursed to those who deserve it properly. God Almighty urges Muslims to spend their money to meet the needs of the poor and needy.
Al-Bukhari narrated on the authority of Abu Hurairah that our prophet, PBUH, said:
"If Allah gives a person wealth and he does not pay Zakat on it, his wealth will appear to him on the Day of Resurrection as a bald-headed snake with two dots above its eyes. It will take hold of the corners of his mouth on the Day of Resurrection and will say: 'I am your wealth; I am your hoarded treasure.' He recited this verse: 'And let not those who covetously withhold of that which Allah has bestowed on them of His Bounty (wealth) and think that it is good for them (and so they do not pay the obligatory Zakat).
Allah the Almighty said: “But as for all who lay up treasures of gold and silver and do not spend them for the sake of Gods - give them the tiding of grievous suffering [in the life to come. On the Day when that [hoarded wealth] shall be heated in the fire of hell and their foreheads and their sides and their backs branded therewith, [those sinners shall be told:] "These are the treasures which you have laid up for yourselves! Taste, then, [the evil of] your hoarded treasures"
Our Prophet said: “Those who prevent zakat are stricken with famine.”
Our Prophet, PBUH, also said: (I have been commanded (by Allah) to fight people until they testify that there is no true god except Allah and that Muhammad is the Messenger of Allah and perform Salat and pay Zakat. If they do so, they will have the protection of their blood and property from me except when justified by Islam, and then the account is left to Allah").
- Gold and silver
- Tradable Commodities
- Industrial Wealth
- Crops and Fruits
- Women's Jewelry
- Business Shares
- Zakat al-Fitr
Zakat on gold and silver is due whenever its value reaches the Nisab (threshold amount) and after the lapse of one full lunar year.
Zakat on jewelry made of gold and silver: (such as gold and silver watches, pens, and utensils). Zakat is due when it reaches the Nisab and the lapse of one full lunar year. The value of the zakat is 2.5 % according to the price of gold and silver on the day the zakat is due.
Banknotes are treated like gold and silver in terms of Nisab. The Nisab for any banknote equals (85) grams of gold. Your banknotes include your cash, your bank accounts, and the market value of shares and bonds prepared for trading, whenever they reach Nisab and after the lapse of one lunar year. Its value is 2.5%.
Zakat is a duty on all funds that were purchased with the intention of trading, whether they are real estate, food, agricultural, cattle, or others. Zakat is not due to the tradable commodities that the merchant or company intends to keep, such as buildings, cars, equipment, and land that are not intended to be sold or traded. The zakat on tradable commodities is paid after the lapse of one lunar year. The merchant valuates his commodities, adds them to his money, then adds his debts, subtracts the debts he owes to others, and then pays the remaining zakat at the rate of 2.5%. The merchant valuates his commodity at the current market price, whether it is lower or higher than the purchase price. It is also permissible to pay zakat from commodities to make it easier for people
There is no zakat on buildings, equipment, and production tools prepared for manufacturing. Zakat is paid on the profit generated by the factory, as well as on the raw materials used in manufacturing, if one year has passed, as well as manufactured materials that have not yet been sold, and they are valued according to their raw materials, without any reference to increases in their value due to workmanship in its value. The value of zakat herein is 2.5%.
Zakat is due to agricultural wealth according to Qur’an, Sunnah, and consensus. God Almighty says: (Eat of their fruit in their season but render the dues that are proper on the day that the harvest is gathered)
And says: (O ye who believe! Spend of the good things which ye have earned, and of that which we bring forth from the earth for you." The lapse of one lunar year is not considered in crops and fruits zakat, as it is due according to season and harvesting.
Amount of zakat on crops:
- In the case of irrigation without cost, the amount of zakat is 10%.
- In the case of irrigation at a cost, the amount of zakat is half a tenth (2.5%)
- In the case of joint irrigation (with and without cost), the amount of zakat is three-fourths of a tenth (3, 75%)
Conditions for Zakat on livestock:
- To reach the Nisab.
- Lapse of one lunar year.
- To be grazing "Saimah".
- “Saimah” linguistically means grazing, and in terms of Sharia it means cattle that graze most of the year. If they feed on cultivated crops; then it is not regarded as a grazed cattle and Zakat is not due
- Likewise, there is no zakat on working camels and cows, which are used by their owner in plowing, watering, carrying, and the like.
- There is no zakat on horses for riding, carrying, and jihad
- There is no zakat on horses fed on cultivated crops all year.
- There is no zakat on horses prepared for trade
Calculating zakat on horses prepared for trade:
- Horses shall be valued and the tenth (10%) of its value shall be paid
- If they are hired, their revenue shall be collected at the end of the year and a quarter of a tenth (2.5%) shall be paid.
Zakat is due at the rate of one-fifth (20%) on rikaz and minerals extracted from the earth, according to the words of the Prophet: (A fifth is payable on a buried treasure "Rikaz". Allah also says: "O ye who believe! Spend of the good things which ye have earned, and of that which we bring forth from the earth for you.")
Zakat is obligatory on every valuable item that is extracted from the earth such as gold, silver, and rubies. The lapse of one lunar year is not required for rikaz Zakat.
If the company pays zakat on its shares in the manner indicated in the companies’ zakat, the shareholder does not have to pay zakat on his shares from them due to duplication, but if he takes his shares for trading, buying, and selling, then zakat is due on them with a percent of (2.5%) according to market value on the day zakat is due, like other tradable commodities.
Zakat al-Fitr is obligatory for a Muslim who has more than his food and the food of his family and his basic needs. A Muslim is required to pay zakat al-Fitr on behalf of himself, his wife, and his family. The minimum amount is one (1) Sa’ "four double handfuls" of rice or barley and the like. Sa' is 2.5 kilograms of rice. Zakat al-Fitr is obligatory at sunset on the last day of Ramadan. The Sunnah is to pay it on the day of Eid al-Fitr before Eid prayer. It may be paid one or two days before Eid.
10% is taken from the net income of honey, i.e., after deducting expenses and costs. As for sea pearls and the like: Al-Hasan bin Emarah narrated on the authority of Ibn Abbas that Omar bin Al-Khattab said: (The zakat of amber and each sea ornament is 20%).
Jurists have different opinions about the payment of zakat on women's jewelry. Some of them made it obligatory to pay zakat on jewelry every year, and others believe that zakat should be given out once in a lifetime. Some of them are of the opinion that zakat is not obligatory except on jewelry that is not intended to wear. The correct view is that zakat is not obligatory on women’s jewelry, no matter how much that jewelry is. This is the opinion of the majority of the Prophet's Companions, followers, and those who followed their guidance.