Zakat is derived from the word Zakat, which means “giving to the needy” or “giving to charity.”. This is one of the most important duties of Islam. Zakat is the third pillar among the five pillars of Islam, and its payment is obligatory on every adult Muslim.
Surah Al-Anam 141:
“And He it is who causes gardens to grow, [both] trellised and untrellised, and palm trees and crops of different [kinds of] food and olives and pomegranates, similar and dissimilar. Eat of [each of] its fruit when it yields and give its due [zakat] on the day of its harvest.”
What is zakat?
Zakat is a compulsory charity that is given to a Muslim when he meets the limit of Nisab. Zakat is the purification of a Muslim’s property according to Islam.
“And establish prayer and give Zakat, and whatever good you put forward for yourselves – you will find it with Allah.”
(2:110, Qur’an)
Types of Zakat:
There are two types of Zakat Al-Mal and Zakat al-Fitr. Both types aim to help the needy. There are important differences between these two types that are important to explain.
Zakat Al-Mal:
This is the Zakat that Muslims pay on their annual savings or wealth, and there are certain conditions and rules for it.
Eligibility
- Zakat Al-Mal is obligatory only on those Muslims whose wealth reaches the standard of “Nasab” (i.e., a fixed limit that is considered to be 87.48 grams of gold or its equivalent).
- This Zakat is obligatory when this wealth is maintained for one lunar year (Hijri).
Quantity:
2.5% of wealth is given in Zakat al-Mal.
Duration:
Zakat Al-Mal can be used in eight specific periods according to the Qur’an (e.g. the poor, the needy, the debtor, and in the way of God).
Time:
Zakat can be paid at any time when the Nisab is fulfilled, but most Muslims prefer to pay it in Ramadan.
Zakat al-Fitr (Fitrana):
This Zakat is paid at the end of Ramadan before Eid al-Fitr.
Eligibility:
- Zakat al-Fitr is obligatory on every Muslim, whether male or female, adult or child
- It is not only a duty on those who cannot meet their basic needs
Qunatity:
- The amount of Fitrana is given for a fixed quantity of food items or its value, such as wheat, barley, or dates.
- The amount of Fitrana in different regions may vary according to local rates.
Time:
It is important to have food before the Eid al-Fitr prayer so that the mustaqeen also enjoy the Eid.
Key Differences:
| ASPECT | Zakat Al-Mal | Zakat al-Fitr |
| Importance | Completion of the curriculum is mandatory. | It is obligatory on every Muslim if one day’s food is available. |
| Time | Anytime in the year. | Before Eid al Fitr. |
| Quantity | 2.5% of wealth. | A certain amount of food items or their price. |
| Term | Eight types are mentioned in the Quran. | It is usually given to the poor and needy. |
Who is able to pay zakat?
In order to pay Zakat, a Muslim has to fulfil the following conditions:
- Adult: Zakat is obligatory only on adult Muslims.
- To be wise: Zakat is obligatory on those who are sensible and wise.
- Persistence of wealth throughout the lunar year: If one has Nisab (87.48 grams of gold or equivalent wealth), then Zakat is obligatory.
- Freedom from debt or slavery: Wealth equal to or more than Nisab for one full lunar year
- Owning Curriculum: If someone has a debt and saves less than the required amount, then Zakat is not obligatory.
“Take, [O, Muhammad], from their wealth a charity by which you purify them and cause them increase, and invoke [ Allah ‘s blessings] upon them. Indeed, your invocations are reassurance for them. And Allah is Hearing and Knowing.”(9:103, Qur’an)
Who is eligible for zakat?
Zakat is given to specific categories of people, including:
- The poor
- The needy
- Zakat administrators
- New Muslims
- Those in debt
- Those in bondage
- Travelers
- Those in the cause of Allah
When to Pay Zakat:
Zakat is obligatory when the recommended limit is reached and a full linar year is completed.
There is no specific time for when to pay Zakat. But people give more priority to the month of Ramadan for extra blessings
Sahih Bukhari (1419):
Narrated Abu Huraira:
A man came to the Prophet and asked, “O Allah’s Apostle! Which charity is the most superior in reward?” He replied, “The charity which you practice while you are healthy, niggardly, and afraid of poverty and wish to become wealthy. Do not delay it to the time of approaching death and then say, ‘Give so much to such and such, and so much to such and such.’ And it has already belonged to such and such (as it is too late).”
Zakat Calculation:
Zakat is a financial act of worship whereby Muslims donate 2.5% of their wealth, provided their wealth exceeds the Nisab amount.
What is Nisab?
Nisab is the minimum amount of wealth or property that is necessary for Zakat to be obligatory. If a Muslim has wealth or property in excess of the Nisab, then Zakat is obligatory on him for a full lunar year.
How to calculate zakat:
Cash (bank, pocket, or anywhere safe)
✅ Gold and silver (in the form of jewelry or bullion)
✅ Commodities (business stocks, products, etc.)
✅ Other investments (shares, bonds, savings accounts)
⛔ Zakat is not due on these things:
❌ Personal items (house, car, clothes, household goods)
❌ Money that has been given to someone as a loan and has not yet been returned.
Subtract debts and liabilities:
If you have any debts or liabilities that are due within a year, subtract them from your total wealth.
Calculate the amount of Zakat:
Deduct 2.5% of the total Zakatable wealth.
🔹 Formula:
Total wealth × 2.5 ÷ 100
🔹 Example:
If someone has Rs. 500,000 and is debt-free, then:
500,000 × 2.5 ÷ 100 = Rs. 12,500
This amount must be paid as Zakat.
Payment of Zakat:
Zakat is given to those who are among the 8 deserving people listed in the Quran, such as the poor, the needy, the debtor, the traveller, and those working in the way of Allah.
✅ Zakat is preferable to give during Ramadan, but when the nisab is complete, it should be paid immediately.
The Eternal Reward of Giving (Zakat) in Islam:
Zakat is not just a financial duty but a great act of worship that purifies wealth and promotes compassion, equality, and brotherhood in society.
Due to the Zakat, the gap between the rich and the poor is widened, and harmony is created in the society. For those who give zakat with sincerity, Allah promises numerous blessings in this world and in the hereafter.
“The example of those who spend their wealth in the cause of Allah is that of a grain that sprouts into seven ears, each bearing one hundred grains. And Allah multiplies ˹the reward even more to whoever He wills. For Allah is All-Bountiful, All-Knowing”.
(Surah Al-Baqarah: 261)
The Prophet Muhammad (peace be upon him) highlighted the importance of Zakat with the following famous hadith:
“Islam is built upon five pillars: bearing witness that there is no god but Allah and that Muhammad (peace be upon him) is His Messenger, establishing prayer, giving Zakat, fasting in Ramadan and performing Hajj.”
(Sahih Bukhari, Hadith: 8)
Zakat is not only the fulfilment of a duty but also a source of spiritual rewards that will last forever.
FAQs
- What is the Nisab threshold for zakat?
The Nisab is the minimum wealth a Muslim must have to pay zakat. It’s usually the value of 87.5 grams of gold or 612.36 grams of silver. Check the current Nisab value in your currency to see if you need to pay zakat. - Can zakat be paid in installments?
Yes, zakat can be paid in installments as long as the full amount is paid within the year. Paying in installments helps avoid delays. - Do I have to pay zakat on my house or personal items?
Zakat is not due on your personal house or items unless they are for investment or resale. Review your assets to check what qualifies for zakat. - Is Zakat due on my savings even if I haven’t earned them this year?
Yes, zakat is due on any savings you hold, even if you didn’t earn them during the year, as long as you’ve had them for a full year and they meet the nisab threshold. - What should I do if I can’t afford to pay zakat this year?
If you can’t afford to pay zakat, try to pay in installments or delay until you’re able. Make a plan to pay when you can. - Can zakat be paid on assets such as cars or houses?
Zakat is not due on personal property like cars or houses unless you plan to sell them as part of a business. Zakat is for wealth held for trade or investment. - Is zakat due on wealth that has been gifted to me?
Yes, if you receive a gift that exceeds the nisab and hold it for a full year, zakat is due on it. Keep track of any gifts you receive for zakat calculation. - What if my wealth fluctuates throughout the year? Do I calculate zakat based on the average amount?
Zakat is calculated based on the amount you have at the end of the year, not the average amount. If your wealth falls below nisab at any point, you don’t have to pay zakat. - Is zakat applicable if I’m in debt?
Yes, if your wealth is greater than nisab after subtracting your debts, zakat is still due. If your debts are more than your wealth, zakat is not required. - Can zakat be paid before the full year has passed?
Zakat is usually due after a full lunar year, but if you want to pay early, make sure to account for the full year when calculating the zakat amount. - Can I give zakat online?
Yes, many trusted organisations accept zakat donations online, making it easier and more secure to give. - Do I need to pay zakat on gold and silver jewellery that I wear daily?
If you wear gold or silver jewellery for personal use, zakat is generally not required, even if its value exceeds the nisab. However, if you keep jewellery for investment or resale, zakat would apply.