Zakat is an annual act of giving and ensuring the rights of the poorest in our community. By giving away a certain amount, you are helping the needy as well as purifying your own wealth. That is the essence of Zakat. As Ramadan is here and we are calculating our portion of Zakat, some questions may arise. So let’s get into the basics, shall we?
HOW MUCH IS THE AMOUNT?
The amount will be 2.5% of the annual savings, which has to be above the minimum amount called “Nisab”
WHAT IS NISAB?
Nisab is the benchmark amount. If what you own or your personal wealth is more than your Nisab, then you have to pay Zakat. Otherwise, you don’t.
Nisab is the benchmark amount. If what you own or your personal wealth is more than your Nisab, then you have to pay Zakat. Otherwise, you don’t.
For gold: If you have cash equivalent of 7.5 bhori (87.45 grams) gold then you are liable to Zakat.
For silver: If you have cash equivalent of 52.5 tola (615 grams) silver then you are liable.
Most importantly, if you have the extra amount that exceeds your Nisab, then that amount has to be held by you for one complete year and then you can pay Zakat. That amount also has to be free from debt, mind you.
WHAT IS ZAKAT PAID ON?
Zakat is calculated on annual savings and not on your monthly income.
CAN MISSED ZAKAT BE REPAID?
Yes! If you forgot or miscalculated any of your previous Zakat then you can repay it by calculating it the same way. But the amount of Nisab will have to be recalculated using present value.
HOW SHOULD YOU PAY?
You can either pay directly by yourself, in which case it is not necessary to reveal that what you are giving is Zakat. Or you can even give away through agencies.
IS FITR A PART OF ZAKAT?
Nope. Fitr is another obligatory charity that should be paid by all Muslims before Eid-ul-Fitr and it is completely different from the asset-based Zakat.
Hope this makes things simple! After all, it is our duty to make sense of money. Let us all perform this spiritual duty of giving back to society and enable everyone to move forward together.
