Definition of Zakat
There are five basic pillars of Islam. Zakat is one of those five basic pillars and involves distribution of wealth from wealthy to poor and needy people. This pillar is based on the principle that everything belongs to Allah Almighty thus the wealth people have shall be distributed among the needy beings. It is an Arabic word and it means ‘purification’ and ‘growth’. Muslims have faith that when then set aside a portion of their wealth for needy and poor, their wealth is purified and Allah Almighty increase their wealth. Every adult who is mentally healthy and financially independent is obligated to give zakat.
Explanation of Zakat
Every Muslim men and women adult financially independent is obligated to give zakat at the end of every Islamic year. It is obligatory to give zakat when a person has certain amount of money, this is called nisab of zakat. A person whose wealth is below nisab is not obligated to give zakat.
It is obligatory when a person has the nisab (minimum amount) of 7 tola gold or golden currency meaning around 85 grams of pure gold. The zakat is also obligatory when a person’s silver or silver currency equals 200 dirhams, this is about 595 grams of pure silver. The basic principle of calculating nisab of other kinds of wealth like money is through gold. Nisab of cash is the price of 85 grams of pure gold, on the day it is paid.
When is it Due?
It is obligatory to five at the end to each Islamic year. When the wealth is in control of its owner for one lunar/Islamic year then it is compulsory. 2.5% of the total wealth shall be given as zakat. If the owner of the wealth has taken any loan from others then he/she must pay off the loan first then check the remaining wealth, if it reaches or exceeds nisab then the owner need to give it.