Zakat does not refer to charitable gifts given out of kindness or generosity, but to the systematic giving of 2.5% of one’s wealth each year to benefit the poor.
Zakat a compolsury ect of worship that requires Muslims who own wealth at or over a certain threshold (Nisab) to donate a portion of thier qualifying wealth, typically 2.5%, to eligible recipients. it’s a right the poor have the rich.
The Nisab set by Profet Muhammad (peace be upon him) at a rate equvalent to 87.48 grams of Gold and 612.36 grams of silver, equating approximately £2361 and £260 respectively (January 2014).
Linguistically, Zakat carries meanings of purification and growth.
The significance of this pillar is such that in the Quran it is mentioned 28 times in conjuction with the observation of Salat, the obligatory prayer
Amongst thease is the obligation of Zakat, the third of five pillar of Islam.
Islam encourages employment, enterpreneurial activity, trade and the equitable distribution of wealth. In order for commerce to benefit society, Islam imposes several obligations on those involved in wealth creation.
Scholars infer that the giving of Zakat hasd both an outer and inner dimension. The inner dimention suppresses the ego, quelling tendencies such as selfishness and miserliness. The outer dimension involves the purification of a Muslim’s wealth.
The Qur’an specifies eight categories for the distribution of Zakat:
*The poor *The needy * Those employed to administer Zakat *Those whose hearts are to be reconciled * Those in slavery * Those in debt * In the way of Allah * The destitute traveller.
Poor and needy Zakat recipients are defined as those whose Zakatable asseta are valued below the Nisab level and also whose surplus non-Zakatable assets are valued below the Nisab level. Surplus assets are defined as any non-Zakatable assets that is never used.
Someone whose surplus assets valued above the Nisab level, and who also has Zakatable assets veled below the Nisab level neither pays nor recieves Zakt.