Frequently Asked Questions

1. What is Zakat?

Zakat is an obligatory act of worship in Islam. Muslims whose wealth reaches the nisab threshold must give 2.5% (1/40) of their wealth annually to eligible recipients.

2. What is the Nisab Threshold?

The nisab is the minimum wealth that makes zakat, fitr, and Qurbani obligatory:

  • Gold: 80.18g

  • Silver: 595g

  • Livestock: 5 camels, 30 cattle, or 40 sheep/goats

  • Debts are deducted before calculation.

3. What Are the Conditions for Zakat?

  • Person Conditions: Must be Muslim, free, and owner of wealth reaching nisab (Hanafis add maturity and sanity).

  • Wealth Conditions: Full ownership, capable of growth, above basic needs, debt-free, and held for one lunar year.

4. What Are Basic Needs?

Food, water, clothing, housing, healthcare, tools for work, books, and essential household items.

5. Which Assets Are Subject to Zakat?

  • Cash (gold, silver, money)

  • Agricultural produce

  • Livestock

  • Trade goods

  • Minerals/treasures

6. Is Zakat Due on Women’s Jewelry?

  • Most scholars: No zakat if gold/silver jewelry is for personal use within reasonable limits.

  • Hanafi: Zakat is always due on gold and silver.

7. Is Zakat Due on Rental Properties?

  • No zakat on property itself

  • Yes on rental income if savings reach nisab after one year.

8. Is Zakat Due on Real Estate?

  • Not due on personal use (home, office, farm).

  • Due if property is held for trade or investment (2.5% of market value yearly).

9. Is Zakat Due on Tools and Work Equipment?

  • No, if for personal/professional use.

  • Yes, if bought for trade.

10. Is Zakat Due on Salary?

No zakat on the salary itself, but savings that remain above nisab for a year are zakatable.

11. Is Zakat Due on Money Saved to Buy a House?

Yes, if it reaches nisab and is kept for one year, unless already contractually paid.

12. What Are the Conditions for Zakat to Be Valid?

  • Niyyah (intention)

  • Transfer of ownership to recipient

13. Who Is Eligible to Receive Zakat?

  1. The Poor (Fuqara)

  2. The Needy (Masakin)

  3. Zakat Collectors

  4. Those Whose Hearts Are Reconciled

  5. Slaves/Servants seeking freedom

  6. Debtors

  7. In Allah’s cause (Fi Sabilillah)

  8. Stranded travelers (Ibn as-sabil)

14. Who Cannot Receive Zakat?

  • Non-Muslims

  • The wealthy

  • Able-bodied people who refuse work

  • Prophet’s descendants (Sayyids)

  • Direct ascendants/descendants of the payer

15. Can Zakat Be Given to Relatives?

  • Allowed: Siblings, in-laws, step-parents, foster parents (if poor).

  • Not Allowed: Parents, grandparents, children, grandchildren.

16. Can Zakat Be Used for Medical Treatment?

Yes, if the patient is poor and treatment is essential. Not allowed for luxury/elective treatments.

17. What If Zakat Is Given to the Wrong Person by Mistake?

  • Valid if reasonable effort was made to verify.

  • Invalid if given carelessly without checking.

18. Should You Declare It’s Zakat When Giving?

Not necessary—better to give discreetly to protect the recipient’s dignity.

19. How to Calculate Zakat?

  1. Add total assets (cash, gold, trade goods, receivables).

  2. Deduct debts and basic needs.

  3. If wealth ≥ nisab for one lunar year → Pay 2.5%.

20. When Is Zakat Due?

When wealth reaches nisab and a year passes. It should be paid immediately, not delayed until Ramadan.

21. Can Zakat Be Paid in Installments?

Yes, but it’s better to pay in full promptly.

22. Can Zakat Be Paid via Bank Transfer?

Yes, as long as the full amount reaches the recipient. Fees must be paid separately.

23. Can Zakat Be Paid Before the Year Ends?

Yes, if wealth already reached nisab, zakat can be paid early.

24. How to Handle Missed Zakat?

Missed zakat must be repaid for previous years based on the wealth that was due at that time.

25. Does Tax Replace Zakat?

No. Taxes and zakat serve different purposes. Taxes do not replace zakat.

26. Is Zakat Due on Commercial Goods?

Yes, zakat is calculated on the market value of trade goods and profits (2.5%).

27. Is Zakat Due on Livestock?

Yes, depending on type and number (e.g., 40 sheep → 1 sheep as zakat).

28. Is Zakat Due on Agricultural Products?

Yes, 10% if naturally irrigated, 5% if artificially irrigated. Nisab: ~653 kg of crops.

29. Can Zakat Be Given in Goods or Meat Instead of Cash?

Yes, if it equals the zakat value and benefits the poor.

30. Is Zakat Required on Shares/Stocks?

  • Yes, if bought for trade (based on market value).

  • If held for dividends, include in total wealth when calculating zakat.

31. Is Zakat Due on Industrial Companies?

Zakat is paid on current assets and profits (not machinery or buildings).

32. Is Zakat Due on Receivables?

  • Strong receivables (loans, trade debts): zakat due annually.

  • Medium receivables (rent): zakat due once collected if above nisab.

  • Weak receivables (inheritance, dowry): zakat due after collection + 1 year.

33. Is Zakat Due on Payables (Debts)?

  • Immediate debts: deducted from wealth.

  • Long-term debts: only current year’s installment is deducted.

34. Who Pays Ushr (Agricultural Tithe) on Rented Land?

  • Tenant (ijara): pays ushr.

  • Sharecropping: both tenant and landowner pay based on share.

  • Free lending: user of the land pays ushr