10 Questions
According to the Hadith narrated by Al-Khudri, what is the minimum number of camels on which Zakat is applicable?
Five camels
What is the purpose of Nisab in Zakat calculation?
To distinguish between rich and poor
When does the counting of Zakat start?
When the amount of money exceeds the Nisab
Which type of wealth is exempt from Zakat according to the text?
Agriculture and fruits
What is the basis of Zakat calculation?
Lunar year
What is the issue with the amount of five 'awsuq' mentioned in the Hadith?
It is not clear what exactly five 'awsuq' is
When should the Nisab be assessed according to the Hanafi opinion?
During the whole year of haul
What is the difference between the two major opinions on when to assess Nisab?
One opinion is based on the whole year of haul and the other on the end of the haul
What is the purpose of the Hadith narrated by Al-Khudri?
To specify the minimum amount of wealth on which Zakat is applicable
Which of the following types of wealth is not exempt from Zakat?
Employment income
Study Notes
Conditions of Zakat Obligations
- Zakat is only obligatory on Muslims
- Zakat is not waived on children or insane as it is a financial worship obligatory on wealth, not on the individual
- Zakat is not obliged on non-Muslims until they revert and will not be asked for any Zakat for the period of disbelief
Principles of Zakat Accounting
- Determining the Zakat Base
- Calculating the Due amount of Zakat
- Preparing Zakat Statements and Reports
- Distributing Due Zakat amongst its beneficiaries
Mal (Wealth) Liable to Zakat
- Gold and Silver
- Agricultural produce
- Wealth extracted from the earth (Minerals)
- Livestock such as camels, cows, and sheep
- Money, gold or silver used as cash business assets and as savings
- Crops and fruits, especially basic foods such as wheat, barley, dates, and raisin
- Treasures hidden underground by ancients and minerals stored by Allah inside and on the surface of the earth
- Income derived from exploited assets
- Employment income of an individual
- Financial securities such as shares, bonds, sukuk, etc.
- Business wealth of Islamic financial institutions
Limits of Exemption (Nisab)
- Hadith narrated by Al-Khudri, the Prophet (PBUH) said: "There is no Zakat on less than five camels, and there is no Zakat on less than five Awaq (of silver) and there is no Zakat on less than five Awsuq (measure of grains)"
- Issues: How much is exactly five "awsuq" and would the amount be applicable to all grains and seeds irrespective of their categories and value
The Yearly Term (Haul)
- Zakat is calculated according to the lunar year
- Nisab can also distinguish between the rich and the poor
- Counting starts when the amount of money attains the Nisab (the minimum amount on which Zakat should be paid)
- This includes all kinds of Zakat except Zakat on agriculture, fruits, mineral assets, and Rikaz (metals found in the earth)
Zakat Beneficiaries
- The poor among them
- The Prophet (PBUH) said: "Take Zakat from them and do not take the best of their possessions"
Test your knowledge of Zakat accounting principles, including the conditions of Zakat obligations, Mal (Wealth) liable to Zakat, limits of exemption, and Zakat beneficiaries. Understand the rules and regulations of Zakat in Islam.
Make Your Own Quizzes and Flashcards
Convert your notes into interactive study material.
Get started for free
