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Here is a store that has many good books you can buy on Zakat, Charity and Its Principles. These books will in'shaa'ALLAAH guide you in the exact way of doing your Zakaah.
Here is an article that is about zakat that in'shaa'ALLAAH will help you.
http://www.contactpakistan.com/news/news188.htm
Zakat - A Solution for Muslim Poverty
By Ziaul Islam
Riyadh, KSA
Many Muslims around the world either don’t pay Zakat, pay it reluctantly or cut corners to minimize the due amount. Some Muslims living in high tax areas feel Zakat overburdens them after paying direct and indirect taxes. This attitude is of course due to weakness in faith as many Muslims have not understood the principles of Zakat and what good it can do for the Muslim community.
There is so much wealth in the Muslim world that if all Muslims, on whom Zakat is due, pay their fair share and it is distributed honestly to the deserving than no Muslim will face extreme poverty and hunger as we see in so many countries these days. It will also eliminate the need for Western aid which usually comes with strings attached and sometimes for the purpose of spreading Christianity.
Let us try to understand some principles about Zakat.
Zakat is one of the five pillars which constitute the foundation of Islam(other four being declaration of belief, prayer 5 times a day, fasting in Ramadan and pilgrimage to Makkah if health and resources permit). Hardly ever is faith mentioned in the Quran without it being associated with prayer and Zakat and the need to fulfill both duties. So much is the importance of Zakat in Islam that it has been mentioned in eighty two places in the Quran in close connection with prayer. Prayer and Zakat are given precedence over other types of Islamic worship because prayer, which is offered purely for Allah’s sake, has an important role in restraining people from committing sinful and evil deeds, while Zakat has a greatly beneficial effect on both individuals and the society.
It is obligatory upon every Muslim, in possession of wealth above a prescribed limit, to pay Zakat. There are many advantages of which some are mentioned below:
1-It meets the needs of the poor of the society
2-It strengthens the good relation between the rich and the poor
3-It cleanse and purify the wealth
4-It promotes open-handedness, generosity and sympathy in a Muslim towards the needy person
5-It draws Allah’s blessing; causes increase in wealth and replacement of spent wealth as promised in the Quran “And whatsoever you spend of anything(in Allah’s cause), He will replace it. He is the Best of those who grant Sustenance.”(34:39)
On the contrary, a severe punishment awaits those who act miserly and are negligent in paying out Zakat. Allah describes this as “ And those who hoard up gold and silver(the money, the Zakat of which has not been paid), and spent it not in the way of Allah, announce unto them a painful torment. On the Day when that( money,gold and silver etc, the Zakat of which has not been paid) will be heated in the fire of Hell and with it will be branded their foreheads, their flanks, and their backs: (and it will be said unto them): ‘This is the treasure which you hoarded for yourselves. Now taste of what you used to hoard’.”(9:34,35)
Zakat is paid on the surplus of wealth which is left over after a passage of a year. It is thus paid on the accumulated wealth at least equal to “Nisab”(limit). Nisab is the minimum amount on which Zakat must be paid. If the wealth is below Nisab one does not have to pay Zakat. The Nisab is as follows:
Gold: 3 oz(85 grams)
Silver: 21 oz (595 grams)
Cash: equivalent to gold or silver which ever is less
Stocks & Merchandise: same as for cash
Zakat is obligatory on the following kinds of wealth
·The produce of earth like grains and fruits
·The grazing animals
·Gold, silver, cash
·Commercial commodities
·Merchandise
Leaving aside animals and agricultural yield for which specific rules apply, Zakat is paid at one-fortyth(1/40) part or 2.5% of the total accumulated wealth. For example, if the total of all liquid assets is $100,000 the Zakat due will be $2500. Items of personal use such as the house one lives in, furniture, cloths, cars, household items etc are exempt. Zakat is due on gold and silver jewelry even though it may be for personal use as such items are liquid assets and readily cashable for other use. Property, tools and equipment used to generate business income are exempt.
If one has liquid assets on the due date, Zakat will be paid on all of it irrespective of the future intent for some or all of it. For example, one may be saving money to buy a house; however, till the time when the money is used to buy the house it will be included in the calculation of Zakat as the money is liquid asset which can be used for any other purpose also if the need arises.
A common misconception is about outstanding debt. Suppose a person has $10,000 in cash on Zakat due date and he also has outstanding debt of $10,000. Since he has available assets on the due date he has to pay Zakat on all of it irrespective of the loan as the money can be used for any purpose. However, if he uses the $10,000 he owns to pay off his debt before the Zakat due date then his assets will be below the Nisab and no Zakat will be due.
Allah categories those who deserve to receive Zakat in Quran(9:60) as follows:
· the poor
· those employed to collect Zakat
· to attract the hearts of those inclined towards Islam
· to free the captives
· for those in debt
· for Allah’s cause, i.e for Mujahideen
· for the wayfarer(traveler in need)
Relatives to whom Zakat may be paid are those to whom we are not duty bound to support. These include sons and daughters, parents and grandparents as supporting them is our religious obligation. It is recommended to pay Zakat in the following order of priorty; relatives, neighbours, community, city, country and then to Muslims in the rest of the world. For those of us living in Saudi Arabia or similar places where there is general prosperity and people eligible for Zakat are difficult to find, we may send our Zakat to the communities where we originally grew up.
The simplest way to calculate Zakat is to establish a specific Hijri date, say 1st of Ramadan. Every year on that date add up all the liquid assets you own such as bank accounts, market value of stocks on that day, amount of gold/silver you possess multiplied by the rate on that day, property/ land etc for sale(establish its market value). Add up all the amounts and multiply the total by 0.025. This will give you the Zakat amount payable.
May Allah Subhanahu wa ta'ala guide us to the right path and give us the strength of faith to fulfill all his commandments and live a life as shown to us by His Prophet Mohammed :saw: (PBUH). Ameen.
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http://www.islambasics.com/view.php?bkID=20&chapter=40
Fiqh-us-Sunnah, Volume 3: Zakah in Islamic Jurisprudence
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Zakah or alms tax can be defined as that portion of a man's wealth which is designated for the poor. The term is derived from the Arabic verbal root meaning "to increase." "to purify," and "to bless." It find its origin in Allah's command to: "Take sadaqah (charity) from their property in order to purify and sanctify them" [at-Taubah 103]. That is why this kind of sadaqah is called zakah, for by paying it, one is aspiring to attain blessing, purification, and the cultivation of good deeds.
Taking into account its very nature, it is no wonder that zakah constitutes one of the five pillars of Islam. It is associated with prayer (salah) in eighty-two Qur'anic verses. Allah, the Exalted One, prescribed it in His Book (The Qur'an), His Messenger corroborated it by his (sunnah), and the community (ummah) by consensus upheld it. Ibn 'Abbas reported that when the Prophet, upon whom be peace, sent Mu'azh ibn Jabal to Yemen (as its governor), he said to him: "You are going to a people who are People of the Scripture. Invite them to accept the shahadah: that there is no god but Allah and I am His Messenger. If they accept and affirm this, tell them that Allah, the Glorious One, has enjoined five prayers upon them during the day and night. If they accept that, tell them also that He has enjoined sadaqah upon their assets which will be taken from the rich of the (Muslim) community and distributed to the poor. If they accept that, refrain from laying hands upon the best of their goods and fear the cry of the oppressed, for there is no barrier between Allah and it."
At-Tabarani relates in al-'Awsat and as-Saghir, on the authority of 'Ali, that the Prophet said: "Allah has enjoined upon rich Muslims a due to be taken from their properties corresponding to the needs of the poor among them. The poor will never suffer from starvation or lack of clothes unless the rich neglect their due. If they do, Allah will surely hold them accountable and punish them severely." According to at-Tabarani: "It was reported only by Thabit ibn Muhammad az-Zahid." Of Thabit's credibility, al-Hafiz in turn says: "Thabit was an honest and trustworthy person. AlBukhari and others related from him, and the rest of the narrators in the chain are considered as accepted authorities."
In the early days of Islam at Makkah, no limit or restriction was placed on the amount to be donated, for that decision was left to the individual Muslim's conscience and generosity. In the second year of hijrah, according to the widely known authorities, both the type and the quantity of zakah revenues were determined, and detailed illustrations were provided.
Volume 3, Page 2: Exhortation to Give Zakah in the Qur'an
At-Taubah 103 authorizes the Prophet, upon whom be peace, to take either a stipulated amount of alms from the believers' holdings in the form of the obligatory zakah, or a voluntary, unstipulated amount (zakah of tatawwul). In this 'ayah, "purify" means to purify them from stinginess, greed, and meanness, and a lack of remorse toward the poor and the wretched. To sanctify them is to raise them in esteem through good deeds and blessings so that they will be worthy of happiness both now and in the afterlife.
In reference to the life hereafter, Allah reveals: "Lo! Those who keep from evil will dwell amid gardens and watersprings, taking that which their Lord gives them. For they were before doers of good. They used to sleep but little of the night, and in the hours of the early dawn they prayed for forgiveness.... In their wealth, the beggar and the outcast had due share" [azh-Zhariyat 15-19]. Allah views beneficence and righteousness as exclusive qualities of the pious. It is because of their beneficence that they pray at night and ask Allah's forgiveness at dawn as a way of worshipping and approaching Him. Their beneficence is likewise in their giving to the needy their share of mercy and sympathy.
Allah further confirms: "And the believers, men and women, are protecting friends of one another; they enjoin the right and forbid the wrong, they perform prayer and pay the zakah, and they obey Allah and His Messenger. Upon them, Allah will have mercy" [at-Taubah 71].
Such are the people blessed by Allah and given His mercy-- those who believe in Him, who take care of each other through support and love, who exhort fairness and restrain lewd behavior, who have strong ties with Allah through prayer, and who strengthen their mutual relations through zakah.
Finally, these people, as reflected in al-Hajj 41, are: "Those who, if we give them power in the land, perform prayers and pay zakah, and enjoin kindness and forbid inequity." Giving zakah is, therefore, one of the reasons for which the righteous are given authority on earth.
Volume 3, Page 3: Exhortation to Give Zakah in the Hadith
At-Tirmizhi relates from Abu Kabshah alAnmari that the Prophet, upon whom be peace, said: "I swear upon three (things) and ask you to memorize my words: Sadaqah taken from a property never decreases it; a man who suffers injustice and is patient with it, Allah will grant him strength; a man who starts begging, Allah will cause him to be poor."
Ahmad and at-Tirmizhi relate (and the latter graded it sahih) from Abu Hurairah that the Messenger of Allah, upon whom be peace, said: "Allah receives charity by His right hand, and then He causes it to grow for each of you. Just as you raise a horse, colt, foal, or young weaned camel, so thatmorsel becomes as large as the Mount of 'Uhud."
Of this hadith's content, Waki' says: "This is sanctioned by the Qur'an: 'Do they not know that it is Allah alone who can accept the repentance of His servants and is the (true) recipient of whatever is offered for His sake - and that Allah alone is an acceptor of repentance, a dispenser of grace?' [at-Taubah 104]. 'Allah deprives usurious gains of all blessing, whereas He blesses charitable deeds with manifold increase.' [al Baqarah 276]."
Again, Ahmad relates, with a sound chain of narrators, that Anas said: "A man from the tribe of Tameem came to the Messenger of Allah, upon whom be peace, and said: 'O Messenger of Allah! I have plenty of property, a large family, a great deal of money, and I am a gracious host to my guests. Tell me how to conduct my life and how to spend.' The Messenger of Allah, upon whom be peace, replied: 'Pay zakah out of your property, for truly it is a purifier which purifies you, and be kind to your relatives, and acknowledge the rights of the poor, neighbors, and beggars'."
It was reported from 'Aishah that the Messenger of Allah, upon whom be peace, said: "I swear upon three things: Allah does not equate one who has a portion in Islam with one who does not. The portions of Islam are three: prayer, fasting, and zakah. If Allah takes care of a man in this world, He will take care of him on the Day of Judgment. If a man likes a group of people, Allah will certainly include him among them. As for the fourth, if I swear on it, I hope I will not commit a sin: that if Allah conceals a man's sin in this world, He will certainly not expose him on the Day of Judgment."
At-Tabarani relates in al-'Awsat, that Jabir reported: "A man said: 'O Messenger of Allah! What will be the gains for a man who pays zakah on his assets?' The Messenger of Allah, upon whom be peace, said: 'For one who pays zakah on his asssets, he will be removed from the evil in them'."
On the same subject, al-Bukhari and Muslim relate that Jabir ibn 'Abdullah reported: "I gave my allegience to the Messenger of Allah, upon whom be peace, that I will establish salah (prayers) and zakah, and I will give advice to every Muslim."
Volume 3, Page 4: Punishment in the Qur'an for the Delinquents of Zakah
Allah says: "O you who believe! Most surely many of the doctors of law and the monks eat away the property of men falsely and turn them from Allah's way; and as for those who hoard treasures of gold and silver and do not spend them for the sake of Allah--warn them of grievous sufferings [in the life to come]. On the Day when that [hoarded wealth] shall be heated in the Fires of Hell and their foreheads and their sides and their backs branded with it, [it will be said to them:] 'These are the treasures which you have hoarded for yourselves. Now taste of what you used to accumulate!' [at-Taubah 34-35]." He also says: "And they should not think--they who avariously cling to all that Allah has granted them out of His bounty--that this is good for them. No, it is bad for them, for that which they hoard will be hung about their necks on the Day of Judgment" [al-'Imran 180].
Volume 3, Page 4a: Punishment in the Hadith for the Delinquents of Zakah
Ahmad, al-Bukhari, and Muslim relate from Abu Hurairah that the Messenger of Allah, upon whom be peace, said: "No owner of a treasure who does not pay zakah will be spared, for his treasure will be heated in the Fires of Hell and then made into plates. His flanks and his forehead will be branded with them until Allah pronounces judgment on His servants during a day lasting fifty thousand years.
[The individual] will be shown his path, leading him either to Paradise or to Hell. A camel owner who does not pay zakah will not be spared (either). He will lay flat on a sandy, soft plain and they will run over him heavily one after another until Allah pronounces judgment on His servants during a day lasting fifty thousands years. [The individual in question] will then be shown his path, leading him either to Paradise or to Hell. Equally, no owner of goats who does not pay zakah (will be spared). He will lay flat for them on a sandy plain, and the goats will run over him as heavy as they will come and they will trample him with their hoofs and gore him with their horns--with twisted horns or with no horns--one after another until Allah pronounces judgment on His servants, during a day lasting fifty thousand years, and [the individual in question] will be shown the path, leading him either to Paradise or to Hell. They [the Companions] asked: 'O Messenger of Allah, what about the horses?' He said: 'Horses have goodness in their foreheads (or he said 'Goodness lies in the foreheads of the horses') until the Day of Judgment. Horses are of three kinds: they are a source of reward for the owner, they are a cover, or they are a burden to a person. As to those [horses] that bring rewards, one who raises and trains them for the sake of Allah will get a reward from Him as well as all that they consume will be considered a reward for him from Allah. For every stalk of grass in the meadow that one lets them graze, there is a reward for him. For every drop of water that one lets them drink from the creek, there is a reward.' He went on describing until a reward was mentioned even for their urine and their feces.
'And for every step that they prance on elevated ground, there is a reward. As for the one to whom they will provide cover [in the life hereafter], he is the one who raises them for honor and dignity and remembers the right of their backs and stomachs in plenty and adversity. As for the one to whom they are a burden, he is the one who raises them for glory and showing off to people.' They asked: 'O Messenger of Allah, what about donkeys?' He said: 'Allah has not revealed to me anything in regard to them except this one comprehensive verse: 'He who does an atom's weight of good will see it, and he who does an atom's weight of evil will see it' [az-Zalzalah 7]."
Al-Bukhari and Muslim relate from Abu Hurairah that the Prophet, upon whom be peace, said: "Whoever is made wealthy by Allah and does not pay zakah on his wealth, on the Day of Judgment it will become a bald-headed, poisonous, male snake with two black spots over his eyes. The snake, on the Day of Judgment, will encircle his neck, and bite his cheeks and say: 'I am your treasure, I am your wealth.' " Then he [the Prophet] recited this 'ayah: " 'And let not those who hoard up that which Allah has bestowed upon them of his bounty...' [al'Imran 180]."
Ibn Majah, al-Bazzar, and al-Baihaqi relate from Ibn 'Umar that the Messenger of Allah, upon whom be peace, said: "O Muhajirun, beware of five traits: if ever immorality spreads in a community and there is no sense of shame on its occurrence or mentioning it [and people talk about it as if nothing bad has taken place], diseases which were not present in the time of their predecessors will spread among them. If they decrease the measure and weight (of sold grains or food), they will be overcome by poverty, their provisions will decrease and their ruler will be unjust. If they refrain from paying the zakah due on their properties, they will be deprived of rain, unless they get it only for the sake of their cattle. If they renounce their commitment to Allah and His Messenger, they will be governed by an enemy who is a stranger to them and who will take away some of what they possess. If their rulers do not rule according to Allah's Book, they will be afflicted by civil war. Allah forbid that these should happen to you."
Al-Bukhari and Muslim relate from al-Ahnaf ibn Qays that he said: "I was in the company of some men of Quraish, when a man (Abu Zharr al-Ghafari, a companion of the Prophet) came with coarse hair, clothes, and appearance. He stood up, greeted them and said: 'Inform those who hoard property that a stone will be heated in the Fires of Hell and then placed on the nipples of their breasts until it comes out from the top of their shoulders. It will then be placed on the top of their shoulders until it comes out again from the nipple of their breasts, and they will be shaken.' Then he left. I followed him and sat near him, not knowing who he was. I said: 'These people disliked what you said to them.' He observed: 'They do not understand anything that my friend said to me.' I asked: 'Who is your friend?' He replied: 'The Prophet, upon whom be peace. [One day he asked me]: 'Do you see the Mount of Uhud?' I looked at the sun to see how much of the day was left, as I thought that the Messenger of Allah, upon whom be peace, wanted to send me on an errand for him. I said: 'Yes.' Upon this he said: 'Nothing would delight me more than having gold equal to the bulk of Uhud and spending all of it (in Allah's way) except three dinars.'
'Indeed, these people do not understand and go on accumulating riches. By Allah! I neither ask them for this world, nor do I ask them anything about religion until I meet Allah, The Exalted One.' "
Volume 3, Page 7: Judgment on the Zakah Refrainer
As an obligation upon Muslims, zakah is one of the essential requirements of Islam. If somebody disputed its obligation, he would be outside of Islam, and could legally be killed for his unbelief unless he was a new Muslim and could be excused for his ignorance.
As for the one who refrains from paying it without denying its obligation, he would be guilty of committing a sin. Yet, this act does not place him outside of Islam. It is the ruler's duty to take zakah from the defaulter by force and rebuke him, provided he does not collect more than the stipulated amount. However, in the views of Ahmad and ash-Shaf'i (in his earlier opinion) the ruler could take half of the defaulter's money, in addition to the calculated amount of zakah, as a punishment. This view is based on what Ahmad, anNasa'i, Abu Dawud, al-Hakim, and al-Baihaqi have recorded from Bahz ibn Hakim all the way back to his grandfather who said: "I heard the Messenger of Allah, upon whom be peace, say: 'Whether the camels of the zakah payer are grown or baby camels, it makes no difference in his reward if he gave them willingly. (However,) if someone refrains from paying it, it will be taken from him along with half his property, for it is a right of our Lord, the Blessed and the Exalted, not a right of the house of Muhammad.'"
Asked about its chain, Ahmad ruled it good (hassan). Of Bahz, al-Hakim says: "His traditions are authentic." Ash-Shaf'i, as alBaihaqi says, did not include it for fiqhi consideration because . . . "this hadith is not confirmed by the scholars of hadith."
If some people refrain from paying zakah knowing that it is due and that they can afford to pay, they should be fought until they yield and pay. Al-Bukhari and Muslim report that Ibn 'Umar heard the Prophet say: "I have been ordered to fight people until they say that none has the right to be worshipped but Allah, and that Muhammad is His Messenger, and they uphold the prayers, and pay the zakah. If they do this, their lives and properties will be safe, except for what is due to Islam, and their accounts are with Allah."
Abu Hurairah is reported to have said: "When Allah's Messenger, upon whom be peace, died and Abu Bakr succeeded him as caliph, some Arabs apostasized, causing Abu Bakr to declare war upon them. 'Umar said to him: 'Why must you fight these men?', especially when there is a ruling of the Prophet, upon whom be peace: 'I have been called to fight men until they say that none has the right to be worshipped but Allah, and whoever said it has saved his life and property from me except when a right is due in them, and his account will be with Allah.' Abu Bakr replied: 'By Allah! I will fight those who differentiate between salah and zakah because zakah is the due on property. By Allah! If they withheld even a young she-goat ( 'anaq) that they used to pay at the time of Allah's Messenger, upon whom be peace, I would fight them.' Then 'Umar said: 'By Allah! It was He who gave Abu Bakr the true knowledge to fight, and later I came to know that he was right.' "
The same hadith narrated by Muslim, Abu Dawud, and atTirmizhi has the following variant: "If they witheld the 'iqal, the rope of the camel," instead of "'anaq, young she-goat."
Volume 3, Page 8: Who is Obliged to Pay Zakah
Zakah must be paid by every Muslim who has a nisab, which is the minimum of one's holdings liable to zakah. The nisab is conditioned by the following:
-1- Zakah should be paid on any amount of money remaining after meeting the expenses for such necessities as food, clothes, housing, vehicles and craft machines.
-2- A complete year of Islamic calendar should pass, starting from the very day of the nisab's possession, without any decrease during the year. In case of its decrease (being less than nisab), the year count (hawl;) starts from the day of the nisab completion.
Commenting on the issue, an-Nawawi said: "In our view and the views of Malik, Ahmad, and the majority of scholars, the amount of property liable for payment of zakah, such as gold, silver, or cattle, is tied to the completion of nisab through the turn of a whole year. If the nisab decreases in any time of the year, [the counting of] the year discontinues. Later, if the nisab is completed, the year count is resumed from the time of its completion."
On the same subject, Abu Hanifah holds: "What matters isthe availability of nisab at the beginning and end of the year. Its decrease at any time in between does not matter, even though the zakah payer had two hundred dirhams and he lost all but one dirham during the year, or if he had forty sheep, all of which died except for one during the year. If, at the end of the year, he had two hundred dirhams, or forty sheep, then he must pay zakah on all of that. This condition is not applicable to the zakah of plantations and fruits, for their zakah should be paid on the harvest day. Allah, the Exalted One, says: 'And pay the due thereof upon the harvest day' [alA'raf 142]."
Al-'Abdari elaborated that: "The holdings subject to zakah are of two kinds. The first kind grows by itself: crops and fruits. The second kind is used for growing and production: money, merchandise, and cattle. In the former case, zakah should be paid at the time of harvest. In the latter case, it should be paid at the end of the haul. This was the opinion of all jurists as reported in anNawawi's al-Majrnu'."
Volume 3, Page 9: Zakah on the Holdings of Infants and Mentally Retarded People
The guardian of a child or of a mentally retarded person must pay zakah on his behalf from his property if it constitutes a nisab.
'Amr ibn Shu'aib reported from his father backed up by a chain of sources going back to 'Abdullah ibn 'Amr that the Messenger of Allah, upon whom be peace, said: "One who becomes the guardian of an orphan with property must trade on his behalf and not leave it passive in order to avoid depletion of the property by sadaqah."
However, this hadith has a weak link. Still, al-Hafiz affirms that: "There is a similar hadith of the mursal type in the compilation of ash-Shaf'i, who confirmed that it is considered a sound one. 'Aishah used to set aside zakah for the orphans who were under her protection."
At-Tirmizhi concludes that: "Jurists differ on this issue. More than one companion of the Prophet, upon whom be peace, said that zakah may be taken from an orphan's property. Among these are: 'Umar, 'Ali, 'Aishah, and Ibn 'Umar. This view is also supported by Malik, ash-Shaf'i, Ahmad, and Ishaq. Another group, including Sufyan and Ibn al-Mubarak, hold that: 'Zakah should not be taken out of an orphan's property.' "
Volume 3, Page 9a: The Insolvent Debtor
Whoever has property must pay its proper zakah. If the property is indebted, he may first pay off his debt, then in case the remainder is enough to constitute a nisab, he must pay zakah. If he does not hold the nisab, he does not have to pay it since he is poor. The Messenger of Allah, upon whom be peace, said: "Only the wealthy are required to give charity." This hadith is related by Ahmad and al-Bukhari. The latter records it in mu'allaq form. The Prophet also said: "Zakah is levied on the rich and paid to the poor." It is all the same, whether he is indebted to Allah or to man, because one hadith states: "Allah's debt is more deserving of fulfillment."
Volume 3, Page 10: Zakah Owed by a Deceased Person
If a person dies before he pays zakah, then it must be taken from his estate.
According to ash-Shaf'i, Ahmad, Ishaq, and Abu Thaur, it is obligatory that zakah be paid from the property of the deceased, and this payment receives preference over debt, legacy, and inheritance for Allah says: "... after payment of legacies and debts is what you leave ..." [an-Nisa' 12]. Zakah is a debt payable to Allah.
A man came to the Messenger of Allah, upon whom be peace, and said: "My mother died while she still had to make up one month of fasting. Shall I make it up for her?" The Prophet replied: "If there was any debt upon your mother, would you pay it off for her?" The man answered: "Yes." The Prophet then observed: "A debt to Allah is more deserving to be paid off." This is related by alBukhari and Muslim.
Volume 3, Page 10a: The Niyyah (Intention)
Since the payment of zakah is an act of worship, its validity depends upon the expression of one's intention. That is, the zakah payer should pay it for the sake of Allah; he should make up his mind, with all of his heart, that zakah is an obligation to be discharged. Allah says: "And they are commanded no more than this: to worship Allah, sincere in their faith in Him alone" [al-Bayyinah 5].
It is related in al-Bukhari and Muslim that the Prophet, upon whom be peace, said: "The value of [one's] deeds is determined by [one's] intentions; and thus for each shall be according to his intentions." Malik and ash-Shaf'i say that the intention is to be made at the time of rendering zakah. Abu Hanifah holds that the intention must be present at the time of payment or when zakah is being set aside from one's assets. Ahmad's view is that it is permissible to express the niyyah a little earlier before payment.
Volume 3, Page 11: Payment of Zakah in Due Time
Zakah must be paid immediately at its due time. Deferring payment of zakah is prohibited, unless the payer for some valid reason cannot pay it on time. In such a case, he may wait until he is able to pay it. It is related by Ahmad and al-Bukhari that 'Uqbah ibn al-Harith said: "Once I performed the 'asr prayer with the Prophet, upon whom be peace. When he concluded the prayer, he hurriedly went to his house and retumed immediately. Noticing the amazed faces, he said: 'I left at home a piece of gold which was meant for sadaqah, and I did not want to let it remain a night in my house, so I ordered it to be distributed.'"
Ash-Shaf'i and al-Bukhari (the latter in his Tarikh) relate from 'Aishah that the Prophet, upon whom be peace, said: "Whenever sadaqah which is payable is mixed with a property, it will destroy that property." The same hadith is related by al-Humaydi with this addition: "If you have to pay sadaqah which is payable, then it must be set aside, or the unlawful [property] will destroy the lawful one."
Volume 3, Page 11a: Paying Zakah in Advance
It is permissible for zakah to be paid for even two years in advance. Al-Zuhri did not see any problem in paying his zakah before the hawl. Al-Hasan was once asked if a man who had paid his zakah for three years in advance fulfilled his obligation. Al-Hasan answered in the affirmative. Of this view, ash-Shaukani said: "This was the view of ash-Shaf'i, Ahmad, and Abu Hanifah. It was supported by al-Hadi and al-Qasim." Al-Mu'ayyad-billah also subscribes to this opinion as being better, but he says that Malik, Rabi'ah, Sufyan ath-Thauri, Dawud, Abu 'Ubayd ibn al-Harith, and an-Nasir (who comes from the Prophet's family) held that one's obligation is not discharged if the zakah is paid before the expiration of the year. They formulated their stance on the Prophet's hadith, already mentioned, which makes the zakah mandatory for the payer only when he has his possessions for a year. However, this does not invalidate the view of those who maintain that paying zakah in advance is lawful, for undeniably the obligation of zakah is associated with the expiry of one full year. The difference is only on the point of whether one's obligation is discharged if the zakah is paid before the year has expired." Ibn Rushd sums up the subject: "The controversy arises from the question whether it is an act of worship or an obligation owed to the poor. The group which considers it an act of worship, like salah (prayers), does not agree that it should be paid before its time. On the other hand, the group which views it as similar to the case of deferred obligatory dues approves its voluntary payment in advance." In support of his view, ashShaf'i relates a hadith from 'Ali that the Prophet, upon whom be peace, asked for al-'Abbas' sadaqah before its due date.
Volume 3, Page 12: Invoking Blessing for the Zakah Payer
It is desirable that the recipient invoke blessing for the zakah payer at the time of its payment, for Allah says: "Take alms of their property that you may purify and sanctify them and pray for them. Verily, your prayers are a comfort for them" [at-Taubah 103]. It is related from 'Abdullah ibn Abu Awfa that the Messenger of Allah, upon whom be peace, on receiving sadaqah would say: "O Allah, bless the family of Abu Aufa." This is related by Ahmad and others.
Wa'il ibn Hajr reported that the Prophet, upon whom be peace, prayed for a man who had offered a fine she-camel in his zakah payment: "May Allah bless him and make his camels beneficial to him." This is related by an-Nasa'i.
Ash-Shaf'i says: "According to this hadith, the leader may pray for the almsgiver upon receiving his payment by saying: 'May Allah reward you in turn of what you have offered, and may Allah bless what you still possess.' "
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Fiqh-us-Sunnah, Volume 3: Monetary holdings subject to zakah
Islam enjoined zakah on crops, fruit, livestock, merchandise, minerals, gold, silver, and treasures.
Volume 3, Page 13a: Zakah on Gold and Silver
Says Allah concerning zakah on gold and silver: "... As for those who hoard treasures of gold and silver and do not spend them for the sake of Allah--warn them of grievous suffering [in the life to come]" [at-Taubah 34]. Thus, zakah is prescribed for gold and silver--whether they are in the form of coins, ingots, or dust--as long as the amount owned constitutes a nisab, a period of a year has passed, debts are settled, and/or basic needs satisfied from it.
Volume 3, Page 13b: The Nisab of Gold and Its Due
The minimum of nisab for gold is twenty dinars owned for one year. Its due is a quarter of a tenth, that is, half a dinar. For any amount over twenty dinars, a quarter of a tenth is levied upon it. 'Ali reported that the Prophet, upon whom be peace, said: "There is nothing upon you in gold, until it reaches twenty dinars. Thus, if you have twenty dinars at the end of the year, then there is half a dinar levied on it [as zakah]. Any additional amount will be calculated in this manner. There is no zakah on property until it has been owned for one year." This hadith is related by Ahamd, Abu Dawud, and al-Baihaqi. Al-Bukhari grades it authentic and alHafizh verified it.
Zuraiq, the Fazarah clan's protege, reported that 'Umar ibn 'Abdulaziz wrote to him after he became caliph: "Take what passes by you of the commerce of the Muslims--those who trade with their properties--a dinar for each forty dinars. From that which is less than forty, calculate on the lesser amount until it reaches twenty dinars. If you have to take one-third of a dinar, disregard it and do not take anything on it. Afterwards, give them a written release of what you have levied from them until the year expires." This is related by Ibn Abu Shaibah.
Malik says in his al-Muwatta': "The uncontroversial tradition that we have is that the zakah due on twenty dinars is like the zakah due on two hundred dirhams." Twenty dinars are equal to twenty-eight Egyptian dirhams in weight.
Volume 3, Page 14: The Nisab of Silver and its Due
There is no zakah on silver until the amount exceeds two hundred dirhams. The amount payable is a quarter of a tenth for any amount. There is no zakah exemption on (silver) coins if they attain a nisab.
'Ali reported that the Prophet, upon whom be peace, said: "I exempt you from paying zakah on horses and slaves. Pay, then, zakah on silver, one dirham for each forty dirhams. Zakah is not due on ninety or one hundred dirhams of silver. If it reaches two hundred dirhams, five dirhams are to be paid." This was related by the authors of as-Sunnan (The Traditions). At-Tirmizhi relates: "I asked al-Bukhari if he confirms this hadith. He said: 'It is authentic.' " At-Tirmizhi also says: "Jurists recognize that sadaqah should be taken out of any amount less than five ounces (awaq). One ounce (uqiyyah) equals forty dirhams. Five awaq equal 200 dirhams. Two hundred dirhams equal twenty-seven riyals equal 555 1/2 Egyptian piasters."
Volume 3, Page 14a: Combining Gold and Silver
If a person owns gold and silver, but neither of them on its own constitutes a nisab, he should not combine the two in order to obtain a nisab. This is because they are not of the same kind. The basic rule is that no category can be combined with another. It is the same for cows and sheep. For example, if someone has 199 dirhams and nineteen dinars, he is not supposed to pay zakah on them.
Volume 3, Page 15: Zakah on Debt
Debts are of two kinds:
-1- A debt which is acknowledged by the debtor with the willingness to pay it off, and
-2- A debt which is not acknowledged either because the borrower is insolvent or its payment is deferred.
In the first case, scholars have formed the following views:: The first view:
'Ali, ath-Thauri, Abu Thaur, the Hanafiyyah, and the Hanbaliyyah hold that the creditor should pay zakah on the debt, provided he has received it from the debtor, in that zakah will be payable retroactively.: The Second view:
'Uthman, Ibn 'Umar, Jabir, Tawus, anNakha'i, al-Hasan, az-Zuhri, Qatadah, and ash-Shaf'i hold that the creditor should pay zakah on the value of a debt owed on time, even though he did not receive it yet, since he is eventually going to receive it and use it. It is similar to the zakah of any deposited amount.: The third view:
'Ikrimah, 'Aishah, and Ibn 'Umar hold that no zakah is due on debt since it does not grow. It is similar to the case of acquired assets.: The fourth view:
Sa'id ibn al-Musayyab and 'Ata ibn Abu Rabah hold that zakah should be paid for one year if the debt is returned to the creditors.
-2- For the second case, Qatadah, Ishaq ibn Abu Thaur, and the Hanifiyyah hold that its zakah is not compulsory on this type of debt, since the creditor cannot benefit from it. Ath-Thauri and Abu 'Ubayd hold that on receipt (of it) the creditor should pay its zakah retroactively since it his and he may use it at his own free will, like the zakah on the debt of a rich person. The last two views are attributed to ash-Shaf'i. 'Umar ibn 'Abdulaziz, alHasan, al-Layth, al-Auza'i and Malik agree that he should pay zakah on it for only one year when he receives it.
Volume 3, Page 16: Zakah on Banknotes and bonds
Since they are documents with guaranteed credits, banknotes and bonds are subject to zakah once they attain the minimum of nisab--that is, a person may change them into currency immediately. The minimum of nisab is twenty-seven Egyptian riyals.
Volume 3, Page 16a: Zakah on Jewelry
Scholars agree that no zakah has to be paid on diamonds, pearls, sapphires, rubies, corals, chrysolite, or any kind of precious stones unless they are used for trade. There is, however, disagreement over whether women's gold or silver jewelry is exempt. Abu Hanifah and Ibn Hazm hold that zakah is compulsory on gold and silver jewelry provided they constitute a nisab. Their view is based on the report of 'Amr ibn Shu'aib from his father from his grandfather: "Two women with gold bracelets on their wrists came to the Prophet, upon whom be peace. The Prophet said: 'Do you want Allah to make you wear bracelets of fire on the Day of Judgment?' They answered: 'No.' He said: 'Then pay the zakah which is due on what you wear on your wrists.' "
In the same way, Asma' bint Yazid reported: "My aunt and I, while wearing gold bracelets, went to the Prophet, upon whom be peace. He asked: 'Did you pay their zakah?' She related that they had not. The Prophet said: 'Do you not fear that Allah will make you wear a bracelet of fire? Pay its zakah.' " Al-Haythami confirms that it was narrated by Ahmad, and its chain is good.
'Aishah narrated: "The Messenger of Allah, upon whom be peace, came to me and saw me wearing silver rings. Thereupon, he asked: 'What is this, 'Aishah?' I replied: 'I made them to adorn myself for you, O Messenger of Allah.' He said: 'Did you pay their zakah?' I said: 'No, or what Allah wishes.' Then he said: 'Their punishment in Hell is enough for you.' " This is related by Abu Dawud, ad-Daraqutni, and al-Baihaqi.
Malik, ash-Shaf'i, and Ahmad ibn Hanbal hold that there is no zakah on women's jewelry regardless of its value. Al-Baihaqi relates that Jabir ibn 'Abdullah was once asked if jewelry was subject to zakah. He replied that it was not, even if its value exceeded one thousand dinars.
Al-Baihaqi also narrates the case of Asma': "Asma' bint Abu Bakr used to adorn her daughters with gold. Although its value was around fifty thousand dinars, she did not pay zakah on it."
It is related in al-Muwatta' from 'Abdurrahman ibn al-Qasim from his father that 'Aishah used to take care of her nieces, who were orphans under her protection, and adorned them with jewelry without paying its zakah. Also in al-Muwatta' it is related that 'Abdullah ibn 'Umar used to adorn his daughters and slave girls with gold without paying zakah.
Summing up the subject, al-Khattabi concludes: "What appears in the Qur'an supports the view of those who hold that zakah is obligatory on gold and silver, and the traditions also support this. Those who did not consider it obligatory based their view on speculation and some of the traditions. However, to be on the safe side, it is better to pay." These different views deal with allowable gold or silver adornment. As for other adornments which are prohibited-- that is, a woman wearing a man's adornment--their zakah should be paid. The same rule is applied to gold or silver utensils.
Volume 3, Page 17: Zakah on a Woman's Dowry
Abu Hanifah is of the opinion that there is no zakah on the dowry of a woman until she comes to possess it. At the same time, the dowry must constitute the nisab at the end of the year. The position, however, will be different if the woman has accumulated a nisab other than the dowry. In such a case, any amount she receives should be added to the nisab, and zakah should be paid at the end of a year of possession. Ash-Shaf'i holds that a woman must pay zakah on her dowry at the end of one year, even if it is before the wedding. The probability of its restitution because of nullification, or its fifty percent refund because of divorce, does not exempt her from paying it. The Hanbaliyyah are of the opinion that dowry is a credit for women and that it is similar to debts. If the recipient of a dowry is rich, the payment of its zakah is obligatory. If the recipient is insolvent, or does not acknowledge it, then, according to al-Khiraqiyy, the zakah is obligatory regardless of the consumation of marriage. If a woman receives half of her dowry (in the case of her divorce before consumation), she should pay zakah only on the received half. However, if all of the dowry is cancelled before she receives it (in the case of nullifying the marriage on her behalf), she is under no obligation to pay its zakah.
Volume 3, Page 17a: Zakah on House Rent
Abu Hanifah and Malik maintain that the rent is not payable to the landlord at the time of the contract but at the expiry of the renting period. Thus, the landlord who rents out a house should pay the zakah on his house rent, provided the fixed amount meets the following conditions: receiving of the money and completion of nisab at the end of the year. The Hanbaliyyah think that once the contract is concluded, the landlord is entitled to have rent. Thus, if someone leases his house, the zakah is due upon its fixed rate reaching a nisab at the end of the year. This is so because the landlord has the right to spend the rent the way he wants to. The possibility of cancelling the lease does not invalidate the obligation to pay zakah. This case is similar to the case of dowry before the consumation of a marriage. If the rent is an arrear rent, then it should be treated as a debt either as paid or postponed. In al-Majmu', an-Nawawi says: "If somebody leased a house and was paid in advance, he should pay its zakah on receiving it. This is uncontroversial."
Volume 3, Page 18: Zakah on Trade
The majority of scholars among the companions, the followers, the generation after them, and the jurists who came subsequently held that zakah on merchandise is compulsory. Abu Dawud and alBaihaqi relate that Samurah ibn Jundub reported: "The Prophet, upon whom be peace, used to command us to pay sadaqah from [the goods] we had for sale." Ad-Daraqutni and al-Baihaqi relate that Abu Zharr reported the Prophet, upon whom be peace, saying: "There is sadaqah on camels, sheep, cows, and house furniture." Ash-Shaf'i, Ahmad, Abu 'Ubaid, ad-Daraqutni, al-Baihaqi, and 'Abd ur-Razzaq relate that Abu 'Amr ibn Hammas reported from his father that he said: "I used to sell leather and containers. Once, 'Umar ibn al-Khattab passed by me and said: 'Pay the sadaqah due on your property.' I said: 'O Commander of the Faithful, it is just leather.' He replied: 'Evaluate it and then pay its due sadaqah.' "
Commenting on its credentials, Ibn Quadmah says in alMughni that this is a kind of story which is well-known and indisputable. This might be a consensus of opinion.
On the other hand, the Zahiriyyah maintain that merchandise is not subject to zakah. They differ, says Ibn Rushd, because of their use of analogical reasoning to the obligation of zakah and because of their disagreement on the authenticity of Samurah's and Abu Zharr's reports.
However, the majority of jurists view merchandise as a property which increases in value. Hence, by analogy, it is similar to the three categories upon which zakah must be paid: plantations, cattle, and gold and silver.
It is stated in al-Mandr: "Most scholars agree that zakah is obligatory on merchandise even though there is no clear-cut ruling in the Qur'an or the sunnah on this issue. However, there are a number of reports that corroborate each other with regard to the evidence provided by [their] texts. Their rationale is that since merchandise is a form of cash, there is no difference between it and dinars or dirhams in terms of which it is valued. This means that the form of the nisab can alternate between value in the form of cash and that which is valued in the form of merchandise. If zakah had not been obligatory on merchandise, the rich--or most of them --would have converted their cash into merchandise for trading purposes, making sure that the nisab of gold and silver is never possessed by them for a year."
The main consideration here is that by levying zakah on the rich, Allah the Exalted wants to help the poor and to promote the welfare of the people in general. For the rich, its benefit lies in cleansing their persons of stinginess--both in money and feelings. For the poor, its benefit lies in easing their circumstances. Zakah thus eliminates the causes of corruption which results from the increase of money in a few hands. It is this wisdom which the Qur'an refers to when it deals with the distribution of booty: "... that it becomes not a commodity between the rich among you" (al Hashr 7). Therefore, it is not reasonable to exempt businessmen from their societal obligations when they possess most of the nation's wealth.
Volume 3, Page 19: When Goods can be Judged as Trading Goods
The author of al-Mughm states that: "Merchandise can only be considered as trading goods for two reasons:
-1- The actual possession of merchandise is acquired by an act such as a commercial transaction, marriage, divorce demanded by the wife (khul'), acceptance of a gift, bequest, booty, and other lawful acquisition. This is because that which is not subject to zakah cannot be considered as so subsequent to its possession on the basis of niyyah (intention) only, as, for example, in the case of fasting. It does not make any difference whether a person came to possess such items by buying them or not because his possession is by an act similar to inheritance.
-2- The goods are intended, at the time of possession, for trade. These are considered as non-trade goods even though the person intends to use them later for trade.
However, if he possesses these goods through inheritance and intends them for trade, they are not considered as trade goods because the determining factor in such cases is the status of acquisition, not the temporary state of trade. Mere intention will not provide a valid reason to change its status. For example, if a person intends to travel without embarking upon it, then the mere expression of his intention will not constitute the act of traveling. Likewise, if a person bought merchandise for trade and then intended it for possession, it would be considered as such and zakah will not be paid on it.
Volume 3, Page 20: How is Zakah on Trade Money to be Paid
One who possesses merchandise with a nisab for a year should pay zakah on it, the amount of which is a quarter of a tenth of its value. This should be done by a businessman every year. However, the period of a year does not come into effect unless his inventory constitutes a nisab.
Assuming a businessman possesses merchandise short of a nisab and part of a year has passed, his inventory subsequently increases through an unusual rise in value (because of supply and demand or through price fluctuation) so that it constitutes a nisab; or he sold merchandise for the price of a nisab; or during the course of the year he comes to possess other merchandise which, together with his previous amount, completes a nisab; then, the hawl (for the purpose of zakah) starts at that time, and the time elapsed is not taken into consideration. This is the view of the Hanafiyyah, ath-Thauri, ashShaf'i, Ishaq, Abu 'Ubaid, Abu Thaur, and Ibn al-Munzhir.
According to Abu Hanifah, if the merchandise in possession constitutes a nisab at the beginning of the year and also at the end, zakah will still be applicable even though the nisab might have decreased within that time. The reason is that it is difficult to ascertain its completeness in the intervening period.
The Hanbaliyyah hold that if the merchandise decreases during the course of the year and increases again until it constitutes a nisab, the (requisite) period of a year starts all over again because it has been interrupted in its course by the decrease.
