ZAKAT ( MUSLIM CHARITY)

By: Hassan Zubair

Zakat an arabic word which means blessing ,growth and purification. Islamic faith is based on five basic pillars. Shahdah(decerlation of faith , Hajj (pilgrimage) , Salah (5 times daily) ,Fasting in the ‘Holy month of Ramadan‘. However Zakaat is the most basic and obligatory. It’s every muslim’s religious duty to give away only 2.5% of their wealth annually.
This is the least amount to give away in Islam. The basic essence of giving zakaat to the poor and needy is to alleviate the suffering of the poorest around us. Regardless of race ,religion or gender. It’s a Muslim’s duty to give that 2.5% to the needy annually at all costs. As mentioned before it’s amongst the key pillars on which Islamic belief stands on.

When is Zakat Applicable to a Property?
According to our scholars zakat is applicable to certain types of properties. For the capital assets which generate income are subject to zakat .
Land that’s been Resold
A land bought with the idea of reselling it is treated as commercial good. That property will also be liable to zakat. Off-course according to the current value.

Plots
The plots bought by the people for building houses for themselves are not liable to zakat .However if the houses build are rented out and generate income monthy then the owner is bound to give away 2.5% of its amount annually.

When is Zakat not Applicable to a property ?
A house that is built for residential purpose is not liable to zakat .If only you rent out certain portion of that house and that rent adds up into your monthly income then the owner is liable to zakat ,without a doubt .

Agricultural land
If you own an agricultural land then you are not suppose to give zakat for it. However if that particular land generate substantial revenue than the owner is bound to pay ‘Usher’ which is only 10% of the income generated.
In order to calculate zakat on real estate property is simple. All we need is to understand our assest value and how ‘nisab’ works.

Understanding Nisaab
zakat is calculated by taking ‘nisab‘ into account. ‘Nisab’ is basically the minimum amount a Muslim must have before being obliged to give zakat. According to some scholars i quote,”nisab according to gold standard is 3 ounces of gold (87.48 grams) or its cash equivalent. The nisab by the silver standard is 21 ounces of silver (612.36 grams) or its equivalent in cash. ” Since the rates of gold and silver vary from time to time in Pakistan .It is essential that we calculate our zakat that we are liable for by evaluating current price of the gold and silver in the market .

Steps to calculate Zakkat on the Property is Islam
First of all calculate and review all the assets and cash that we own. That will give us a clear picture of our ‘nisab’, most definietly.
Properties owned for a year or more are eligible for zakat. However if a property is owned for less then a year then its not obligated to zakat. When we calculate the sum total of our assets we need to multiply it with 2.5% .The amount calculated will be the amount of Zakat that needs to be given away to the worthy in our society.
For example : Total value of property :Rs 2500000
Calculate zakat : Rs 2500000*2.5%= Rs 62,500
Now the zakat amount is Rs 62,500 which we can pay throughout the year.

• Distribute the zakat into needy and less fortunate people
• the poor (people with no means of livelihood)
• The zakat collectors who are truely authentic
• Recent converts in Islam
• slaves
• people who are in debt
• standard travelers in need of financial aid

Zakat is necessity for all practicing Muslims who fulfil the criteria of ‘nisab‘. We should help the poor and less fortunate without a doubt .We should also no hope for any thankful compliments from those who are given that amount . We should be quite about it since it’s a matter between our Creator and HIS creation.