Podcast
Questions and Answers
The owner of exploited assets is exempted from zakat because the wealth has the potential of growth.
The owner of exploited assets is exempted from zakat because the wealth has the potential of growth.
False
Intention is not a necessary requirement for performing zakah according to the majority of jurists.
Intention is not a necessary requirement for performing zakah according to the majority of jurists.
False
Calculating the Due amount of Zakat is not a principle of Zakat accounting.
Calculating the Due amount of Zakat is not a principle of Zakat accounting.
False
Zakat is only due on wealth used for personal use.
Zakat is only due on wealth used for personal use.
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Al Awza'i considers intention a necessary requirement for performing zakah.
Al Awza'i considers intention a necessary requirement for performing zakah.
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The majority of jurists believe that zakat is a form of debt.
The majority of jurists believe that zakat is a form of debt.
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Distributing Due Zakat amongst its beneficiaries is a principle of Zakat accounting.
Distributing Due Zakat amongst its beneficiaries is a principle of Zakat accounting.
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Zakat is only due on wealth that has no potential of growth.
Zakat is only due on wealth that has no potential of growth.
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Preparation of Zakat Statements and Reports is not a principle of Zakat accounting.
Preparation of Zakat Statements and Reports is not a principle of Zakat accounting.
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Intention is a necessary requirement for performing zakah according to the majority of jurists.
Intention is a necessary requirement for performing zakah according to the majority of jurists.
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Study Notes
Wealth Subject to Zakat
- Livestock, such as camels, cows, and sheep, are subject to Zakat.
- Money, gold, or silver used as cash, business assets, and as savings are subject to Zakat.
- Crops and fruits, especially basic foods like wheat, barley, dates, and raisins, are subject to Zakat.
- Treasures hidden underground by ancients and minerals stored by Allah inside and on the surface of the earth are subject to Zakat.
Classical Jurisprudence
- Assets, such as livestock and trade assets, are subject to Zakat and are annually obligated on the principal and its increments.
- Assets, which may be materially fixed (like land) or non-fixed (like bees), are subject to Zakat and are obligated only on the growth or increase once the harvest is obtained.
Modern Wealth Subject to Zakat
- Income derived from exploited assets are subject to Zakat.
- Zakat is applicable on modern forms of wealth, considering the development and changes in human society and its economy.
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 they will not be asked for any Zakat for the period of disbelief.
- The Zakat payer must be a free person, not a slave.
- The owner must have complete ownership (Milk AtTam) of the wealth, with the right to use or dispose of it without any restriction.
- The wealth must have the potential of growth (increase from time to time).
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.
Other Important Points
- Intention is a prerequisite for performing Zakah, according to the majority of jurists.
- The owner of exploited assets or fixed assets are exempted from Zakat, as the wealth remains as permanent capital that is unchanged (no growth).
- No Zakat for wealth used for personal use.
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Description
Test your knowledge of the types of wealth that are subject to Zakat, as prescribed in the Quran and authentic Hadith. This quiz covers livestock, cash, business assets, crops, and treasures. How well do you understand the principles of Zakat?
