Rules and Rulings

Regarding Zakaat

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 Introduction

Zakaat (obligatory charity) is from among the pillars of Islam. Its obligation has been
so firmly established in numerous verses of the Quran and sayings of the Prophet
(saws), that whoever denies its obligation is considered to have exited the fold of
Islam, while the one who accepts its obligation but fails to pay it is considered a major
sinner.

Zakaat, like all other acts of worship, is obligatory only on Muslims who are baligh
(mature according to the Shari’ah) and of sound mind.
There are further two conditions that are specific to zakaat: possession of a minimum
amount of wealth known as nisaab, and that this wealth has been in their possession
for an entire year.
Furthermore, for the obligation of zakaat to be fulfilled, the intention must be valid,
and recipients of the zakaat must be eligible for it.

Each of these specific conditions are explained in detail below.

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 The Nisaab
There are 4 different types of Nisaab:
Type of Details Nisaab (Minimum
Wealth amount on which
zakaat is obligatory)
1 Gold - In any form (including jewelry, even that 7.5 tola/ 87.47 grams
which is worn regularly) (If one owns more
- Whether in use or not than this minimum
- Pure or mixed with other metals (as long as amount, zakaat is due
the gold content is 50% or more) on the total amount)
2 Silver - In any form (including jewelry, even that 52.5 tola/612.35 grams
which is worn regularly). (If one owns more
- Whether in use or not. than this minimum
- Pure or mixed with other metals (as long as amount, zakaat is due
the silver content is 50% or more). on the total amount)
3 Cash -Whether at home, in the bank, or kept with In the value of the
someone else. lesser of the two nisaabs
- Includes money kept in the bank in fixed above, which is usually
deposits. silver. So, the current
- Includes money that has been loaned to market value of 612.35
someone and it is likely that it will be g of silver or 87.47 g of
returned. gold, whichever is less.
- Includes money that has been invested, e.g. (If one owns more
in the stock market.In case of shares,Zakat than this minimum
comes on market value of shares.Also on amount, zakaat is due
profit like dividend received before your on the total amount)
Nisaab date.
- Includes financial instruments like bonds,
etc.
- Excludes money that is owed to someone
(the amount of money she owes is deducted
from the total that she owns, and if it is still
equal to or more than nisaab, only then zakaat
is due)

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 In other words, liabilities will be deducted
from the nisaab.
However,in case of long term personal
loans(not commercial loans),only yearly
amount will be deducted.
4 Extra This includes things and other house hold Such things should be
things objects that were not in use from a long liquidated as per
that period like kitchen cutlery not in used from market value. If there
were not many years, clothes not in use from many price is equivalent to
in use years, or in use but in eyes of Shariah ,they 612.35 gram silver,
from are considered as extra things like TV. than zakat is also
many obligatory on such
years things.

5 Business Includes goods of any kind that have been In the value of the
goods purchased with the intention of selling for lesser of the two nisaabs
(valued profit, and that intention remains. So, if above, which is usually
at their something was not purchased with the silver. So, the current
current intention of selling it off for a profit, but market value of 612.35
sale rather for personal use or for giving as a gift g of silver or 87.47 g of
value) etc., then even if later it is sold for profit, gold, whichever is less.
zakaat will not be due on it. (If one owns more
- Includes property that has been bought with than this minimum
the intention of selling, and that intention amount, zakaat is due
remains (property that one is currently living on the total amount)
in, or that one has rented out, is NOT
included)

Ruling 1: Zakaat is not due on precious stones, including diamonds. For jewelry which
has precious stones in addition to gold or silver, the weight of the precious stones is
deducted from the total weight of the jewelry, and only the weight of the gold or silver
is considered for zakaat purposes.
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Ruling 2: If a person has none of the above kinds of wealth (gold, silver, ccashextra
things or business goods) in the amount of nisaab, but a smaller amount of two or
more of them which together add up to the value of the less costly of the two nisaabs,
then zakaat will be obligatory on them. E.g. a person has 2 tolas of gold (less than the
nisaab for gold) and 20 tolas of silver (less than the nisaab for silver), and some cash
(less than the amount of nisaab), and together their value is equal or more than 613.25 g
of silver, then zakaat will be due on them.
Ruling 3: If the “gold” or “silver” is actually an alloy with less than 50% gold or silver
content (e.g. 9 carat gold which is 37.5% gold), then it is not included in the nisaab for
gold and silver but rather is included in the nisaab of extra things

NOTE: Zakaat is also due on farm animals and agricultural land once they
exceed a certain minimum amount. However, their discussion is excluded from
this document.

The Time Frame

Zakaat becomes mandatory after an entire year passes from the time the nisaab enters
into one’s possession. It should be paid as soon as possible; however, the obligation is
fulfilled if it is paid at any time in one’s life before death.Important thing to be noted that
year means lunar year,not solar year.So don’t calculate your zakat as per Gregorian solar calender,as
there is difference of ten days in between Solar and lunar year and after 36 year,this becomes difference
of one year . However,it was allowed that you make calculation as per lunar calender ,and than pay at
your ease as per solar gregorian calender for e.g.A person S become owner of Nisaab in Rabi ul
awal,1438 Hijri.Zakat becomes obligatory upon him on Rabi ul awal 1439 Hijri(December 2017)
Once he had calculated the amount of zakat as per this lunar year,he than pay zakat at his ease in
January 2018,or in Feb 2018 ,with in a lunar year.
Ruling 1: If at some time during the year her wealth goes below the nisaab amount but
he regains it before the year ends, zakaat will be due on the whole (the temporary dip

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will be disregarded). However, if he does not regain it before the year ends, zakaat will
not be due.
Ruling 2: If during the year, one gains some more wealth of the same kind (gold and
silver are considered one kind for this rule), then by the end of the year zakaat will be
due on the whole (original plus additional amount), even if a whole year has not passed
on the additional amount. In simple words, just see the start and end of nisaab year.
Ruling 3: If an entire year passes on some nisaab and zakaat becomes due, but before
she actually pays it the wealth on which it is due gets destroyed or stolen, or she gives it
away in charity, she is exempted from paying the zakaat. However, if she gives the
wealth to someone as a gift or uses it herself, she is not exempt from paying zakaat on
it.

Example:
12 jamadi us saani,1437 Hijri,(22 March 2016)- Buys 8 tolas of gold jewelry
20 Muharam 1438 hijri,22October 2016- Gifts 2 tolas worth of jewelry to
daughter (6 tolas remaining)
23 Rabi us saani 1438 hijri,22January 2017- Purchases 3 more tolas
12 Jamadi us saani,1438 hijri,(12March 2017)- Zakaat due on all 9 tolas
1st July 2017- Sells 5 tolas of jewelry (4 tolas remaining)
12 Jamadi us saani 1439,2 March 2018- No zakaat due on the gold if there is
nothing extra exist,neither cash nor extra things and silver.How ever if some one
has less amount of gold but she has also some cash extra than her monthly
needs,than she has to pay zakat on this 4 toola.

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 The Intention
It is mandatory to make the intention for zakaat; without intention the obligation of
zakaat will not be fulfilled, although the amount given will be considered sadaqah
(voluntary charity) and will be a means of reward in the Hereafter.
Intention is an act of the heart; it is not necessary to utter it with the tongue.
When can the Intention for Zakaat be Made?
1. Before,we hand the money to the recipient
2. When we set the money aside to give later as zakaat, even if at the time of
actually handing that money over no intention is made,than
3. When we hand the money over to another person to give on our behalf, even if
the go-between does not make the intention when passing the money on.
Ruling 1: As long as your intention is to pay zakaat, the recipient does not need to
know that it is zakaat. If he thinks it is a reward or a gift, your intention is valid.Also its
is not necessary that you inform him that it is zakat.
Ruling 2: If someone asks you for a loan but you know that the person will not be
able to pay it back and you give it to him with the intention of zakaat, your obligation
of zakaat is fulfilled even if he thinks you are giving him a loan,but not said him that he
has to return.Also donot take back this money from.him.
However, if a person owes you money and you forgive the loan considering that
amount to be zakaat, your obligation of zakaat is not fulfilled. It will be fulfilled if you
give the person that amount of money, and he gives it back to you to pay off the loan.
Ruling 3: If you give a person some money to pay as zakaat on your behalf, but he
does not pass on exactly that money but rather gives his own money instead, this is
permissible if he still has the money that you gave him.If he has already spent the
money that you gave him, , the obligation of zakaat will not be fulfilled for you.
Ruling 4: If you ask a person to pay zakaat on your behalf and he does so without
having received the money from you, your obligation of zakaat will be fulfilled and you
now owe him that amount of money.

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 The Recipients
Who can Zakaat be given to?
Zakaat can be given to anyone who does not possess any of the four types of nisaab
mentioned above, and who also does not possess “more than necessary” items whose
value, when added to the little gold, silver, cash or business goods that he does possess,
reaches the nisaab of gold or silver, whichever is of less value. By “more than
necessary” items are meant those possessions that one uses rarely or of extra than
basics need like some one has two cars,or two laptops or two houses.
So, for example, if a person has a little gold and some cash, but neither on their own
nor together equal nisaab (the value of 612.35 g of silver), but he owns some “more
than necessary items” (e.g. tents and huge carpets that he bought for his son’s wedding
a few years ago but has not used since then) and when the value of these is added to
the value of the gold and cash that he owns the total value now exceeds the value of
612.35 g of silver, he does not owe zakaat (because the “more than necessary items”
are not from the wealth on which zakaat is due), but now he cannot be a recipient of
zakaat either.
Another example is of person who doesnot have any kind of nisaab but has 100
clothes.If the value of extra clothes is equivalent to silver nusasb than he also doesnot
deserves zakat.
Even if a lady has one tola gold and 50 dollars extra cash ,and its value is equivalent to
silver nisaab thaan she also doesnot deserves Zakaat.
The recipients of zakaat can include:
1. Someone who may have possessions of basice needs (such as his own house,
furniture, car, ) but not any of the nisaabs on which zakaat is applicable (e.g. gold,
silver, cash savings, business goods)and also does not have any extra things other
than basic needs, equivalent to silver nisaab

2. Someone who possesses nisaab, but also has to pay back someone a loan and
when you deduct the amount of loan from the value of his wealth, what is left
amounts to less than nisaab.

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 3. A legal adult (baligh) who is poor while his father is wealthy with the condition
that son is living separately and is totally independent. However ,if son is
dependent upon his father,and father is bearing all his expenses than he doesnot
deserves.

4. A traveler who is left with no money during his journey and has no access to his
wealth back home, even if he is wealthy at home.

Whom are ineligible for Zakat receiving ?

1. Non-Muslims

2. Muslims from the family of the Prophet (saws), the descendents of Hadrat Ali
(ra), Hadrat Abbas (ra), Hadrat Ja’afer (ra), Hadrat Aqeel (ra) or Hadrat Harith
bin Abdul Muttalib (ra)

3. Domestic servants, laborers etc. as wages (it can be given as other than
wages).Rule for this is that Zakat cannot be given as a reward of any work.

4. To pay off the debt of a deceased person, or for arranging his funeral or
burial.Basic Rule for this that ,owner ship of a living person is compulsory

5. Zakat cannot be given for construction purposes, even of a school, hospital,

mosque or madrassah as there is no ownership of a living person.

6. To provide clean water facility, or for feeding the poor (e.g. at a community
kitchen or community Iftar) or other works of charity unless they ensure that the

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 money itself is passed on to deserving persons, or if medicine or food supplies
are bought with the intention of zakaat and given to deserving people.

7. Zakat cannot be used in a charitable organization for its administrative expenses

(e.g. payment of bills, salaries of employees, maintenance costs etc.)lack of owner
ship of person

8. To someone who does not possess enough gold, silver, cash and business good
combined to reach nisaab, but when the “more than necessary” household items
that he owns are added to the value of these “zakaatable” possessions, the total
amount reaches the value of the nisaab of silver (explained under “Who can
zakaat be given to?”)

Relatives to whom zakaat CANNOT Relatives to whom zakaat CAN be

be given given
Mother or Father Brother and Sister
Grand-mother or Grand-father Niece and Nephew
Daughter or son Aunt and Uncle (Maternal and Paternal)
Grand-daughter or grand-son Cousins
Husband or Wife Step mother and Step father
Step grand-mother and Step grand-father
Mother-in-law and Father-in-law
Brother-in-law and Sister-in-law

Ruling 1: The entire amount of zakaat can be given to one person, or it can be divided
among multiple deserving people.
Ruling 2: If you give zakaat to a person thinking that he/she is deserving but then
later find out that he/she is a wealthy person, or from the family of the Prophet (saws),
your obligation of zakaat will be fulfilled. However, if you learn that he/she is non-
Muslim, your obligation will not be fulfilled and you will have to pay zakaat again.
Ruling 3: It is best to give zakaat to needy relatives as per the hadith of the Prophet
(saws) in this regard. It is not necessary to tell them that it is zakaat.
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Ruling 4: It is makruh (disliked) to send your zakaat to another country unless a) it is
to needy relatives, or b) people in that country are more needy, or c) it is for people
who are engaged in work of deen.

Checked by
Mufti Hammad Fazal
Askmuftihammad.com
May 2019,

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