Part 3 : Zakat is a fixed proportion collected from the surplus wealth and earnings of a believer.

Part 3 : Zakat is a fixed proportion collected from the surplus wealth and earnings of a believer. It is then distributed to prescribed beneficiaries and for the welfare as well as the infrastructure of a society in general. This contribution is made payable by a Muslim once every year.
The man who spends offers that as a humble gift before the Lord and thus affirms the truth that nothing is dearer to him in life than the love of Allah and that he is fully prepared to sacrifice everything for His sake. There is no burden of obligation on one who receives Zakat, but a sense of thankfulness and gratitude on the part of the giver, since has been enabled by the recipient to discharge his obligation that he owes to Allah and society. Zakat is paid on surplus of wealth that is left over after the passage of a year. It is thus a payment on the accumulated wealth. Leaving aside animals and agricultural yield, Zakat is paid at almost a uniform rate of 2.5%.

Zakat is required to be given on specific forms of wealth, which include:

1. Gold and silver, on the condition that they meet the nisaab (minimum requirement). One is obligated to pay a quarter of a tenth Zakat on the above (i.e. 2.5%). It makes no difference if the gold and silver come in the form of cash, coins or jewelry.

Definition of Nisaab :The Nisaab is the minimum amount of wealth upon which Zakah is payable.Zakah is payable at a rate of 2.5% on all assets including those within the Nisaab threshold.

Furthermore, one must pay Zakat on a woman’s gold and silver jewelry if it meets the nisaab, regardless of whether she wears that jewelry or lends it out. The reason for this is because the evidences that mandate that Zakat be paid on gold and silver are general and not detailed. And it is also because there are specific ahaadeeth that indicate the obligation of giving Zakat on jewelry, even if it is worn, such as what has been reported by ‘Abdullaah bin ‘Amr bin al-‘Aas (radyAllaahu ‘anhu) that:

“A woman once came to the Prophet (sallAllahu ‘alayhi wa sallam) with her daughter who had two gold bangles on her hand. So the Prophet (sallAllaahu ‘alayhi wa sallam) said: ‘Do you pay Zakat on this?’ She said: ‘No.’ So he (sallAllaahu ‘alayhi wa sallam) said: ‘Would it please you if Allah made you wear two bangles of fire instead?’ So she took them of and said: ‘They are for Allah and His Messenger.’” [It is stated in Buloogh-ul-Maraam: “

Another reason is because this is more cautious and the most cautious approach takes priority.

2. Also from the wealth that one is obligated to pay Zakat on is: Business merchandise, which includes everything that is prepared for business purposes, such as real estate property, automobiles, livestock, household goods and other types of wealth. It is obligatory to pay a quarter of a tenth (i.e. 2.5%) on these items.

After holding the item for one year, one must estimate how much it is worth and pay 2.5% (Zakat) on it, regardless of whether it now costs more, less or the same amount as what he originally paid for it. As for the items he prepares for his personal use or which he leases, such as real estate property, automobiles, appliances and so on, then there is no Zakat due on them based on the Prophet’s (sallAllaahu ‘alayhi wa sallam) statement: “A Muslim is not obligated to pay Zakat on his slave or his horse.”

However, Zakat is due on things that are rented out, when their year time-limit is reached, as well as on gold and silver due to what was stated previously.

Shaykh ibn Uthaimeen(Rahimahulla).