Podcast
Questions and Answers
According to the Hadith narrated by Al-Khudri, what is the minimum number of camels on which Zakat is applicable?
According to the Hadith narrated by Al-Khudri, what is the minimum number of camels on which Zakat is applicable?
What is the purpose of Nisab in Zakat calculation?
What is the purpose of Nisab in Zakat calculation?
When does the counting of Zakat start?
When does the counting of Zakat start?
Which type of wealth is exempt from Zakat according to the text?
Which type of wealth is exempt from Zakat according to the text?
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What is the basis of Zakat calculation?
What is the basis of Zakat calculation?
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What is the issue with the amount of five 'awsuq' mentioned in the Hadith?
What is the issue with the amount of five 'awsuq' mentioned in the Hadith?
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When should the Nisab be assessed according to the Hanafi opinion?
When should the Nisab be assessed according to the Hanafi opinion?
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What is the difference between the two major opinions on when to assess Nisab?
What is the difference between the two major opinions on when to assess Nisab?
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What is the purpose of the Hadith narrated by Al-Khudri?
What is the purpose of the Hadith narrated by Al-Khudri?
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Which of the following types of wealth is not exempt from Zakat?
Which of the following types of wealth is not exempt from Zakat?
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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"
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Description
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.
