FAQ’S pertaining to Zakaat (Part 1)

Q. Upon whom is Zakaat compulsory?
A. Zakat is compulsory on every sane, mature Muslim who is the owner of Zakaatable assets (this generally refers to money whether cash or savings, trading stock, gold and silver in any form, and non-property investments) equivalent to the Nisaab and holds the same for one lunar year.

Q. What is Nisaab?
A. The Nisaab is a monetary threshold. One who gains Zakaatable assets equivalent to the Nisaab amount after deducting liabilities, will be regarded as a Nisaab holder. The payment of Zakaat (for first time Zakaat payers) will be due exactly one lunar year later if the person still possesses the Nisaab amount or more.

Q: What is the value of Nisaab?
A. The Nisaab is the value of 612.36 grams of silver.


Q. How much will I have to pay?
A. One will have to give 2.5% of one’s net Zakaatable assets.

Q. What if one’s wealth fluctuates during the year?
A. Fluctuation of wealth during the year does not affect the payment of Zakaat. Zakaat will still be applicable on its due date on the amount held at the time on condition it is equal to or above the Zakaat Nisaab. Only if a person becomes insolvent or his finances fall into a negative balance does the calculation of Zakaat end. When the person gains wealth again, a new cycle of Zakaat calculation will begin.

Q. Who can I give Zakaat to?
A. Zakaat may only be given to needy Muslims who do not own in excess of their personal needs, surplus assets equal to the value of Nisaab. Muslim debtors whose liabilities exceed their Zakaatable and surplus assets also fall within the Zakaat-eligible category.

A person may not give their Zakaat to their parents and grandparents (including great-grandparents), children or grandchildren (including great-grandchildren) or spouse. It is permissible to give Zakaat to all other relatives including siblings if they are Zakaat eligible.

N.B. Zakaat cannot be given for construction projects (like building a Masjid or digging a borehole), nor to the rich or non-Muslims.

And Allah Ta’ala Knows Best