Zakat Jurisprudence (Part 1)

Zakat or Zakah (obligatory charity) is an exceptionally remarkable institution and the third major pillar of Islam. It is an important economic tool in Islamic society. It provides a religiously approved method of managing the economy and finance. 

Definition of Zakat

Literally, the Arabic word Zakat means both purification (of the soul) and growth. It is the worship of Allah involving wealth. Purification of the soul implies freedom from hatred, stinginess, jealousy, uneasiness, selfishness and greed. It also purifies one's wealth, blesses and increases it. Zakat is the right of the destitute on the wealthy in society. This institution ensures that wealth does not only circulates among the rich and leave the others destitute.

Technically, Zakat is a fixed proportion of a Muslim's wealth. That is distributed to prescribed beneficiaries, in the presence of Zakat intention.

Ruling of Zakat

Zakat is obligatory. Allah says in the Holy Quran:

(وَأَقِيمُوا الصَّلَاةَ وَآتُوا الزَّكَاةَ)

"so establish regular Prayer and give Zakat"[24:56]

And with regards to harvest Allah says in the Holy Quran:

(وَآتُواْ حَقَّهُ يَوْمَ حَصَادِه)

"Render the dues that are proper on the day that the harvest is gathered."[6:141]

Punishments for withholding Zakat

Allah Most Gracious says on those who do not pay zakat:

(وَالَّذِينَ يَكْنِزُونَ الذَّهَبَ وَالْفِضَّةَ وَلاَ يُنفِقُونَهَا فِي سَبِيلِ اللّهِ فَبَشِّرْهُم بِعَذَابٍ أَلِيمٍ (34) يَوْمَ يُحْمَى عَلَيْهَا فِي نَارِ جَهَنَّمَ فَتُكْوَى بِهَا جِبَاهُهُمْ وَجُنوبُهُمْ وَظُهُورُهُمْ هَـذَا مَا كَنَزْتُمْ لأَنفُسِكُمْ فَذُوقُواْ مَا كُنتُمْ تَكْنِزُونَ(35))

"And those who hoard up gold and silver and spend them not in the Way of Allah, announce unto them a painful torment. On the Day when that (money, gold and silver the zakat of which has not been paid) will be heated in the Fire of Hell and with it will be branded their foreheads, their flanks, and their backs, (and it will be said unto them): "This is the treasure which you hoarded for yourselves. Now taste of what you used to hoard." [9:34-35]

And as the Prophet Muhammad (peace be upon him) said, "Islam is built upon five things, testimony that there is no God except Allah, and that I am his messenger, the performance of prayers, fasting in the month of Ramadan, the compulsory charity, and the performance of the pilgrimage to the House of Allah".

Abu Bakr As-Siddiq (may Allah be pleased with him) fought against those who refused to pay zakat. Al-Rabii bin Habib reported the account of Abu Bakr and his speech: "By Allah, I will fight anyone who makes any distinction between the prayer and zakat. Zakat is what is due from property. By Allah, if they refuse me a rope of camel which they used to pay to the Messenger of Allah, I will fight them for it.' (Al Jami' Al Sahih, Hadith No: 341). The Companions admitted that Abu Bakr was right and that those who refused to pay zakat were apostates. It had become an Ijma' (agreement) on the obligation of Zakat.

Benefits of Zakat

There are many benefits in giving charity, some of which concern our present life and the others concern the Hereafter. Those concerning our present life are:

1. It protects our wealth. The Messenger of Allah (peace be upon him) said, "Guard your wealth by paying zakat"

2. It purifies us against niggardliness, for blessings of Allah return to the one who pays zakat. Allah says in the Holy Qur'an:

(خُذْ مِنْ أَمْوَالِهِمْ صَدَقَةً تُطَهِّرُهُمْ وَتُزَكِّيهِم بِهَا)

"Of their goods take alms, that so thou might purify and sanctify them." [9:103]

3. It brings happiness to the poor when they receive the zakat.

4. It brings blessings to our wealth and increases our provisions. Allah says in the Holy Qur'an:

وَمَا أَنفَقْتُم مِّن شَيْءٍ فَهُوَ يُخْلِفُهُ وَهُوَ خَيْرُ الرَّازِقِينَ))

And nothing do you spend in the least (in His Cause) but He replaces it: for He is the Best of those who grant Sustenance. [34:39]

5. It relieves us from affliction of sickness, as the Messenger of Allah has said, "Relieve yourselves from your sickness by giving charity".

As for those benefits concerning the Hereafter, they are:

1. It will provide a shadow on the Day of Judgment which protects him from intense heat.

2. It will ease the accounting of one's actions on the Day of Judgment.

3. It will add to the balance of good deeds.

4. It will elevate one's position in Paradise.

Etiquette of Zakat

In paying the Zakat one has to fulfill the following requirements to make it proper and valid:

First, it must come from legal earnings, as Allah says in the Holy Quran:

يَا أَيُّهَا الَّذِينَ آمَنُواْ أَنفِقُواْ مِن طَيِّبَاتِ مَا كَسَبْتُمْ))

"O ye who believe! Give of the good things which ye have (honourably) earned."[2:267]

Second, it must be given to those who deserve to be given, as Allah says in the Holy Qur'an:

إِنَّمَا الصَّدَقَاتُ لِلْفُقَرَاء وَالْمَسَاكِينِ))

"Alms are for the poor and the needy." [9:60]

Third, it must be given as soon as it is due. The due amount is obligatory even if there is a loss of property soon after the due date.

Forth, it must come out of the good portion of the wealth. Allah says in the Holy Qur'an:

(وَلاَ تَيَمَّمُواْ الْخَبِيثَ مِنْهُ تُنفِقُونَ)

"And do not aim at that which is bad to give away for charity from it." [2:267]

Fifth, it must not be given as a showoff or with brag or with expectation of getting something in return. It must be given purely for the sake of Allah, for your return will be from Him.

Sixth, it must be given in a spirit of compassion and goodwill so that the one receiving the zakat will look forward for it another time.

Seventh, it must not be given with reminders of one's generosity or with injury (such as insult). As Allah says in the Holy Qur'an:

يَا أَيُّهَا الَّذِينَ آمَنُواْ لاَ تُبْطِلُواْ صَدَقَاتِكُم بِالْمَنِّ وَالأذَى))

"0 you who believe! Do not render in vain your charity by reminders of your generosity or by injury." [2:264]

So zakat or any charity must be given with pure intention and for the sake of Allah and without reminders of generosity or offence to the recipients. Thus, the poor will receive the zakat with dignity and happiness and will be looking forward for the day when the zakat is distributed. In gratitude they will offer prayers of blessings and supplication for the one who is giving the zakat. Paying the zakat removes stinginess and with the supplications of the recipients Allah blesses the wealth and multiplies it.

Conditions on Zakat

Islam has prescribed several specific conditions. These conditions are categorized into two broad categories, namely performer and asset.

1. Zakat Performer

• The person giving out zakat has to be an adult, sane, Muslim. If a non-Muslim reverts to Islam, he is required to pay zakat from the moment he has become a Muslim. He is not obliged to pay zakat on his wealth for the past period before he became a Muslim.
• Zakat has to be paid on the wealth which belongs to a child who has not yet reached puberty or to a person who is mentally ill, although these people are not accountable to fulfil other obligations of religion such as prayers, fasting and so on.
• Zakat has to be paid on a loan by the person who has given the loan. However, if the debtor is unable to pay back the loan (for example due to bankruptcy), the person who has given the loan is not obliged to pay the zakat, until such time he has recovered his money. He will then pay the zakat without arrears.
• Zakat has to be paid on a wealth which is owned jointly by a group of people, even though individual shares on that wealth are less than the prescribed value on which zakat becomes obligatory.
• Neyyah: The person who is giving the zakat has to do it consciously with a clear intention (Neyyah) in his heart and mind of fulfilling a religious obligation.

2. Zakat Asset

Full Ownership
A Muslim will only be required to pay zakat if he or she has full and legal ownership of an asset.

Assets intended for increasing wealth

• Zakah is payable only on those assets that are acquired for the purpose of creating or generating wealth.
• The following are the categories of wealth on which zakat must be paid.

1. Money (including money which one has given out as a loan), shares and bonds, gold and silver (including women ornaments and household ornaments).
2. Trading and industry.
3. Harvest and other farm products, (for example, dates, raisins, wheat, rice).
4. Animals such as camels, cows, goats and sheep.
5. Income from property like buildings and vehicles if they are used for commerce such as renting.
6. Income from employment (salary) or from self-employment such as a doctor who runs a private clinic.

• Zakat is due on capital employed in a business and associated income. Excluded from zakat are equipment used in the business, value of the residence, private car, business and living expenses.

Nisab

Zakat need only be paid on those assets that exceed a minimum value. This minimum value is termed Nisab. Allah's Messenger (peace be upon him) said, 'There is no charity (Zakat) due on what is less than five Awaq (of silver), and the Awqiyah [singular of Awaq] is forty dirhams, and there is no charity (Zakat) due on what is less than twenty Mithqal (of gold),…' Related by Al-Rabii ibn Habib (Al Jami' Al Sahih, Hadith No: 332)

Completion of Haul

• Zakat is due on a wealth only when that wealth has reached a prescribed value and it is in one's possession for a period of one Haul (Hijri year) and it is a lawful wealth.
• It must be noted that if one has an amount of money which is eligible for zakat and then on the last day before the due date for zakat he receives an additional amount of money, then the additional amount is also included in the calculation of the zakat.
• Zakat on harvest or income which comes from the harvest is paid when the harvest is gathered and not on a yearly basis.

Beneficiaries of Zakat

Allah Most Gracious says in the Holy Qur'an:

(إِنَّمَا الصَّدَقَاتُ لِلْفُقَرَاء وَالْمَسَاكِينِ وَالْعَامِلِينَ عَلَيْهَا وَالْمُؤَلَّفَةِ قُلُوبُهُمْ وَفِي الرِّقَابِ وَالْغَارِمِينَ وَفِي سَبِيلِ اللّهِ وَابْنِ السَّبِيلِ فَرِيضَةً مِّنَ اللّهِ وَاللّهُ عَلِيمٌ حَكِيمٌ)

"Alms are for the poor and the needy, and those employed to administer the (funds); for those whose hearts have been (recently) reconciled (to the truth); for those in bondage and in debt; in the cause of Allah; and for the wayfarer." [9:60]

Zakat can only be distributed to those who are eligible or suitable to receive zakat. These are:

1. The poor - those who earn less than half of their daily need [Faqir].
2. The needy or the destitute — those who can not work for one reason or another or earn very little or nothing, they are worse than the poor [Miskeen].
3. Those who work on the distribution of zakat [Amil]. In the olden days the Imam or the ruler had a department which collected the zakat and employed people to manage the distribution of zakat. In modern days there is Bait al-Maal (Treasure House), a department in the ministry of religious affairs, which distributes zakat.
4. Unbelievers who are being encouraged to join Islam and whose services will be a help to the religion [Muallaf]. The prophet (peace be upon him) used to give zakat to tribal leaders in order to attract their people into Islam.
5. A slave who wants to buy his freedom from his master [Riqab].
6. A person who is in debt (which was acquired for lawful needs) and can not pay his debt [Gharimin].
7. Paying for activities which are carried out for the course of Allah (like propagation of religion) [Fisabillillah].
8. A person who is away from his home and people (for legitimate reasons) and has fallen into need, even if he is well off back home [Ibnus Sabil].

References:

1.    Zakat Obligatory Charity Its Rules and Regulations, by Sheik Nasser Al-Kindy

1.    Zakat, by Ministry of Endowments and Religious Affairs