Zakat in Islam
Zakat is one of the fundamental pillars of Islam. The word Zakat literally means purification and growth. It is a financial act of worship in which every Muslim who possesses wealth above the nisab threshold is required to give one-fortieth (2.5%) of their wealth to the poor, needy, and deserving individuals. Through the payment of Zakat, wealth is purified, blessings are increased, the soul attains purity, and social welfare is promoted.
Meaning of Zakat
Linguistic meaning: To be pure, to grow, and to develop.
Technical meaning: A prescribed financial obligation on every Muslim who possesses wealth above the nisab threshold.
Importance and Purpose of Zakat
Purification: By giving the due right of the poor from one’s wealth, the wealth becomes purified.
Growth and Blessing: Spending wealth for the sake of Allah brings barakah (increase and blessings) in wealth.
Social Welfare: Helping the poor and needy, thereby reducing poverty in society.
Spiritual Benefits: Cleansing the heart and soul from greed and impurity.
Obligation and Nisab of Zakat
Zakat is the third pillar of Islam, and denying it is considered disbelief (kufr).
The Qur’an and Hadith repeatedly emphasize its obligation and importance.
Every Muslim who possesses wealth equal to or above the nisab must give 2.5% (one-fortieth) of it as Zakat.
Recipients of Zakat (Asnaf / Eligible Categories)
Zakat is to be spent on specific groups, including:
The poor (fuqara)
The needy (masakin)
Orphans
The destitute and other deserving individuals.
Basic Requirements for Zakat to be Obligatory
Zakat becomes obligatory on a Muslim who is mature (baligh), sane (‘aaqil), and owns wealth equal to or above the nisab (minimum threshold of wealth beyond basic needs). This wealth must remain in his/her possession for a complete lunar year.
Conditions for Zakat to be Obligatory:
- Being a Muslim: Zakat is only obligatory on Muslims. Non-Muslims are not required to pay Zakat.
- Being Mature (Baligh): Zakat is not obligatory on minors.
- Being Sane (‘Aaqil): An insane person is not obligated to pay Zakat, unless he regains sanity during the year.
- Being Free: A slave is not obligated to pay Zakat.
- Possession of Nisab: The person must own wealth equal to or above the prescribed minimum threshold (nisab), in excess of basic needs.
- Ownership: The wealth must be fully owned and in the person’s possession.
- Beyond Basic Necessities: The wealth should be surplus to essential needs of life (such as a house to live in, clothes to wear, etc.).
- Completion of One Lunar Year: A full Islamic (Hijri) year must pass over the nisab wealth in one’s possession.