Pay Your Zakath

Wisdom Islamic Organization
Kerala Zakath Cell
State Bank of India
Ac/No.: 38439503754
Branch: Palayam, Kozhikode
IFS Code: SBIN0008635

Zakat (The Obligatory Charity)

Islam stipulates that one should eat only what is good.  When is something regarded as pure for eating (twayyib)?  First of all, when what is forbidden by the God for the human consumption is avoided. E.g. carrion (flesh of animals that are dead by themselves) , swine flesh (pig), and loot (that are taken unlawfully from others). Even the things that are not forbidden but considered generally as decent and good are not permissible if the Zakat (the obligatory charity) on money used to procure the same is not paid. This is applicable not only in the case of food, but also for everything which requires money. They are neither permissible to eat, use, cloth or consume in any other form by oneself nor to feed or clothe others.

See what the Prophet (ﷺ) says: "A body nourished by illicit wealth has no access to the paradise”. Numerous prophetic verses have been quoted in this sense.  Verse: 34 of Surah At-Tawbah also confirms this idea: "O you who believe!, there are indeed many among the scholars and monks who in falsehood consume people’s wealth and hinder (them) from the way of Allah. Give glad tidings of a painful torment to those who hoard gold and silver and spend it not in the way of Allah."

Purification of wealth

Then we have to purify our wealth, no matter how much we have.  This purification is done through paying Zakat. Let us comprehend this through a verisimilitude parable.

Suppose a friend who works with you in a foreign land entrusted you with a box of chocolates to give to his children when you pack your luggage and getting ready to leave for your vacation. Your luggage is full of gifts that you have purchased for your favorite ones except a small box of chocolates which your friend gave you.  Imagine how unjust it would be if you give that box of chocolates to your own children instead of giving it to the children of your friend!

Similarly, Allah has entrusted us with a small share of the wealth which he bestowed on us to give to the poor and needy among our relatives, neighborhoods and community. Depending on the nature of the source of wealth, share to be given out as Zakat may vary between 2.5% and 10%. We are allowed to enjoy all of our wealth except that small portion which is not ours in reality. What a sinful act it would be, if we don't pay that share at all or pay less than what is due! Evil is he who consumes all his wealth without properly paying the Zakat.

The word Zakat means purification.  It means to purify by paying the rights of the poor. Many people fear that if they pay Zakat, their savings will become diminished. That is not true, it only causes further growth of our wealth. One thing we need to understand is that God is the one who provides the wealth. He is the one who removes it too. Shouldn't we fear that God will take away what he has given us unless the prescribed portion of it is given to the poor according to his command? Shall we not be subject to the curse of the poor who deserve to receive Zakat from us if we celebrate in extravagance without seeing their suffering?

God has promised that if we are grateful for the wealth he has given us, he will surely increase it. Prophet (AS) taught that the angels keep on praying to make up the shortcomings in the wealth for those who give alms from it.

The society gets benefitted from the wealth only when it is dynamic. When a person ties up his savings, it becomes inactive without benefiting himself or the society. But when it is brought to the society in any form such as a business or charity, etc.., everyone benefits from it. Hence the wealth is getting distributed among all sections of the society which in turn increases its usage. That is the reason for the increase in wealth among the partakers. In this instance it is noteworthy that Zakat also means "growth of wealth".

Wealth is a Test

The Prophet (SA) taught us that there will be a test for every community and that the test for this community is wealth. The essence of it is that the sincerity and discipline in one's faith will be tested through wealth. This means that those who fail the test will be punished.  It is a well-known fact that the people of the Prophets like Noah (as), Hood (as), Saleh (as) and Moses (as) were tested.  But, since they didn't learn a lesson from it they were punished in this world itself. Such is the test that Allah tests the believers with wealth. The test includes how the wealth is earned, how it is spent, whether there is extravagance and stinginess, and whether it is honestly traded or involves fraudulence. Unfortunately, this is the area where many of the believers fail.  Even those who pay particular attention to all other rituals fall into this trap.

It seems to be a general tendency that to trivialize matters like dishonest trade, receiving wages while ignorant in carrying out the work, swindling, financial exploitation in the name of religion, bribery, usury, unfair savings, use of impure wealth for which Zakat is not paid etc. while diligent in all other religious rituals. Is it something else but a test?

System of Zakat in an organized way

Among the above mentioned financial irregularities, failure in Zakat is one of the major shortcomings which questions one's faith (Iman) or losing one's right to claim to be a Muslim.

Islam considers Zakat as a mean of survival of the Muslim community.  Therefore, it is one of the five pillars of Islam.  Zakat was started as a social venture under the leadership of the Prophet (SA). When a government was formed in the country later, it became the responsibility of the ruler (Khalifa).  It is noteworthy that, Khalifa Abu Bakr (ra) declared war on those who refused to pay Zakat. Many of the social affairs that took place under the authority of a ruler apparently prevailed among the Muslim community even in the absence of a government. But unfortunately that did not happen in the case of Zakat. Eventually it was relegated to 'chakath' (a colloquial scorn in Malayalam language for meager alms) thrown by the rich into the begging bowl. This could only help to create more beggars over time, especially during the holy month of Ramadan. This attitude must be changed. Those who wish good for the society and those who fear the punishment of Allah should work together to change this situation.

It is obvious that, there are many people in the Muslim community who are obliged to pay Zakat. They have plenty of money with them too. Those who badly in need of money even for their daily needs are numerous and everywhere around. It is to be mentioned that, the rich do pay a lot of money as Zakat.  But that money doesn't reach the society for the rehabilitation of the poor and needy, rather they are being exploited in many other ways. If the system of Zakat is implemented effectively in an organized way, then the middlemen will have a lot to lose.  Therefore, the collection and distribution of Zakat in an organized way is disputed and discouraged by them.

Another thing to be noted is that, unlike the time of the Prophet (SA) the form and structure of wealth, the means of income and even the scales of measure have changed these days. Doubts and differences of opinion are therefore natural.  But there is no dispute that Zakat should be paid. Those who think that it has to be done in an organized way can join hands together. Awareness on this subject is essential. It is important to keep the following in mind with regards to the collection and distribution of Zakat.

1. Convince the public about the obligation of paying Zakat and the benefits of implementing the system locally in an organized manner.
2. Zakat committees should be managed only by those who are loyal to both personal and financial affairs.
3. There may be people who are hesitant to hand over their entire amount of Zakat to the committee. In such cases, let them cooperate to the extent they are willing to.
4. Be patient and wait for more people to cooperate as the benefits of the organized way of Zakat are proven through practice.
5. Hijri year (Islamic Lunar year) should be set as the time of Zakat for money and trade. There is no problem if there are people those who consider every Ramadan to be the time of the year for paying Zakat. Zakat on agricultural products should be paid at the time of harvest.
6. Merchants are required to take the value of their stock once a year and add the cash balance including guaranteed debts to it for the calculation of their Zakat. They should pay Zakat at the rate of 2.5%. Loans to be paid back can be deducted from the total wealth.
7. People with all other sources of income such as salaries including salaries of those who work abroad, daily or weekly wages, and rent, are required to pay Zakat at the rate of 2.5% for their annual leftovers after what was spent on basic necessities, if such amount is more than the value of 595 grams of silver. Amounts set aside for weddings, house construction and Hajj / Umrah pilgrimages should also be purified by paying Zakat.
8. People among the above-mentioned income group are liable to pay Zakat only if they are left with a stipulated amount at the end of the year in consideration.

9. The Prophet (SA) set the borderline of Zakat for the annual crops at 300 swa'a'. It is equal to 6 Quintals in the modern day measure. It is advisable to estimate the price of staple grain (ie, parboiled rice in the case of Kerala) for that weight at a moderate price. Zakat at the rate of 5% is payable for all types of agricultural products if their value reaches the prescribed limit upon harvest. It is also suggested that the combined annual sum of multiple harvests and various crops can be considered if the value of the same variety crops or single harvest does not meet the minimum limit.

Zakat can be paid at the rate of 10% for crops such as jackfruit, cashew and mango which are produced at no cost.  The scholarly opinion is that 7.50% is enough for crops which require a small amount of care and relative cost.

There are differences of opinion as to whether or not to pay Zakat for all agricultural products.  However, Zakat should not be withheld under this cover.  The owners of the crops should be very careful not to consume even the smallest right of the poor in this regard.

10. The Prophet (SA) allowed the women to use gold jewelry. During those days, possession of gold below 20 miscal (ten and a half pound sovereign or paun) did not come under the minimum limit for paying Zakat. Therefore, some are in the opinion that gold less than 20 miscal can be used as jewelry without paying Zakat and that the Zakat is applicable only for what is more than ten and a half paun.

According to the more accurate view, one should pay Zakat for the value of the entire gold jewelry if it is more than or equal to ten and a half paun. But, Zakat for gold other than jewelry whether it is new or old kept as investment should be calculated as in the case of currency. In other words, if there is gold investment equal to the value of 595 grams of silver, Zakat should be paid.

As mentioned above, only one opinion which is understood to be correct out of various opinions that exist among the scholars since ancient times is shared here. Further discussions and suggestions are still needed. 

Allah knows the best.

To whom should we pay our Zakat

“The alms are only for the poor or needy; and the destitute; and those employed to collect Zakat; and to attract the hearts of those who have been inclined towards Islam; and to free the captives; and for those in debt; and for Allah’s Cause; and for the wayfarer, a traveler who is cut off from everything; a duty imposed by Allah. And Allah is All-Knower, All-Wise.” [Al-Quran 9:60]

According to the Holy Quran, a Muslim should give Zakat to the following eight types of people:

1. Fuqara’

Translated as the ‘poor’ or ‘needy’, these people have some money, but not sufficient for their everyday needs.

2. Al-Masakin

Translated as the ‘destitute’, these are people of extreme poverty who possess no wealth at all, and are in need of asking others for food, clothing and shelter. 

3. ‘Amil Zakat

These are people appointed by an Islamic Head of State or Government to collect Zakat. The authority gives them a fee for their work, which includes collecting, recording, guarding, dividing and distributing Zakat.

4. Mu’allaf

These are people who have just become Muslim, or those whose circumstances are so desperate they fear turning to crime if they are not helpful.

5. Ar-Riqaab

These are slaves whose masters have agreed to set them free on a payment of a fixed amount. Zakat may be used to purchase their freedom.

6. Ibnus-Sabeel

Translated as the ‘wayfarers’, these are travelers stranded in a foreign land in need of money. These people can receive Zakat if the purpose for traveling is lawful.

7. Al Ghaarimeen

These are the debtors, people burdened by debts because of personal needs or social necessity. These people are given Zakat if they do not have enough money beyond their basic needs to repay debts. Help is also provided to those who may have landed themselves in debt as a result of social obligations such as supporting an orphan or renovating a school. It is conditional that the debts were not created for any un-Islamic or sinful purpose.

8. Fi Sabeelillah

These are people who are away from home in the path of Allah. Those in Jihaad, those seeking knowledge or a person stranded in Hajj, may be assisted with Zakat when in need.

Practical approach

Imperfections and flaws can occur in any initiative. Nevertheless, start collection and distribution of Zakat in each area in an organized way with good intentions and due consultation. Get as many participants as possible and to the extent each one of them are willing. This is the practical approach we may adopt.

Finding those who really deserve to receive the Zakat is more difficult than collecting it. It is necessary nowadays to monitor very carefully whether all those who collect Zakat are spending it in the proper way. Since the ultimate goal of Zakat is to eradicate poverty in the society and to make the poor self-sufficient to certain extent by solving their problems, the benefactors should also check whether the Zakat they pay is being handled as such.  One should not think that he is freed from his obligation as he had transferred his responsibility to someone else. Both individuals and Zakat management committees alike must be vigilant as to whether the ineligible people are exploiting the rights of the poor.

Therefore, we should give top priority to reinstate the Organized Zakat System as efficiently as possible.

Remember that wealth is a test from God for this community. Try not to fail this test and be subjected to the punishment of Allah in the Hereafter.