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ZakatZakatObjectives

&

Guidelines

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In the Name ofAllah

the Most Gracious, the Most Merciful

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sura Ta- Ha---25 / 28

"O my Lord Open my chest;"

"Ease my task for me;

"And remove the impediment from my speech."So they may understand what I say:

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ContentsContents Introduction

Concept and Objectives Importance

Guidelines for Calculations &Payments

Rewards and Punishments Key Features/Summary

Open Discussion

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Mea

ning ofMea

ning ofZakatZakat Root word is -----z / k / y

Two Meaning

To Clean , To make it Pure

To Remove impediments and help in growth

and development.

Both meanings are Applicable

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Concept / PhilosophyConcept / Philosophy

To share a small part ofAllahs materialblessings with people Who are materially less

blessed

Help society at micro and macro level to

provide basic needs to all members with dignity

and love

To establish the Writ ofAllah S WT

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Objectives ofZakatObjectives ofZakat Establish a welfare System in the Society

Ensure circulation of wealth

Create spirit of sharing

Reduce love for Wealth

Generate harmony/love in the community

A Way to Earn Rewards

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Salat & ZakatSalat & ZakatMostly referred In Quran together

Both are the Fundamental form of Worship

Mostly mentioned after Eaiman

Practical demonstration of Eaiman

Salat Connect Human being with Allah Zakat Connect Human being with Others

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Al-Hajj /78

One of Key PillarsOne of Key Pillars

So establish regularPrayergive

regularZakat and hold fastto

Allah! He is yourProtectortheBestto protectand the Bestto

help!

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Al-Baiyina /05

ZakatZakat key element of Faithkey element of Faith

And they havebeen commanded no more

than this:to worshipAllah offering Him

sincere devotion being True (in faith); toestablish regularPrayer; and to practice

regularZakat; and that isthe Religion Right

and Straight.

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Al-Muminun-1/4

One ofthemost Important ElementOne ofthemost Important Element

The Believersmust (eventually) win through

Those who humblethemselves in theirprayers;

Who avoid vain talk;

Who areactive in deeds of Zakat;

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Al-Tauba-9/11

Criteria forbeing MuslimCriteria forbeing Muslim

But (even so) ifthey repentestablish

regularprayersand practiceregularZakat they are yourbrethren in faith:

(thus) do Weexplain signs in detail for

those who understand.

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At-Tauba /71

Believer pay ZakatBeliever pay Zakat

Thebelieversmen and women areprotectors of one

and another:they enjoin what isjustand forbid what is

evil:they observeregularprayerspracticeregularZakat and obey Allah and Hisapostle. On them will

Allah pourHismercy: forAllah is Exalted in powerand Wise.

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Al-Baqara /110

Zakat isa WorshipZakat isa Worship

And besteadfast in prayerand

regularin zakat:and whatever

good yesend forth foryoursoulsbefore you yeshall find it with

Allah; forAllah sees well all that yedo.

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Who should payWho should pay zakatzakat

Any one who has in his possession morethan equivalent of the value of 85 gm

gold or 634gm of silver ,over and above

his living expensesOn agricultural produce zakat is

payable if the value of crop is more than

3265kg ofwheat, rice or corn (populargrain)

All adults individually responsible

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Applicability ofZakatApplicability ofZakat

On the Personal Wealth

(including income less expenses )

In case of business:

-On value of merchandise

working capital

-on income / profit

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Typical Things on which Zakat isTypical Things on which Zakat is

ApplicableApplicable

Investment:

Bank balance

Property, ie, plots

Shares /fixed deposits

Provident fund

Life insurance Gold

Income less Expense :

Agricultural produce

Minerals

Business assets like

Machinery/Warehouse,f

actories etc

House,Buildings/Cars

for rent

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Effective Rate P.AEffective Rate P.A

On wealth and Income 2.5%

On Agricultural produceIrrigated 5.0%

Non irrigated 10.0%

On Natural resources 20.0%

Based upon Lunar Calendar

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What is ExemptedWhat is Exempted

House in which one lives or maintainedfor personal purposes. (on House givenon rent its on rent income)

Personal goods of use, cars,furniture

Jewelry of daily use (not for investmentpurpose)

Operating assets like machinery,buildingetc(The zakat is an the income lessexpenses )

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Zakat is nota TaxZakat is nota Tax

zakatzakat TaxTaxIt is Purification ofwealth/income

It is a Worship

Earn reward for paying

Obligation between servant

And Lord of lords

Fixed rates & Rules

Could be distributed directly

Used for specific purposes

No way to hide /cheat

It is a burden /Tax

It is a Liability

No rewards

Obligation between Govt,

and its Citizen

Changes from time to time

Only Govt, uses as per its discretion

Used for all purposes

Lot ofways and means toreduce/cheat/hide

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Who Qualify forZakatWho Qualify forZakat

Alms are only (exclusively) for the poorand the

needyand those employed to administer, and thosewhose hearts are to be reconciledand to free the

captivesand those in debtand in the way of Allah

and the wayfarera duty imposed by Allahand Allah

is Knowing, WiseSurah Tuba:60

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Recipient ofZakatRecipient ofZakat

1. Fuqara

2. Maskeen

3.A

dministrator4. Influencing heart

5. Freeing from bondage

6. Debtors7. In way ofAllah

8. Wayfarer

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Fuqara & MaskeenFuqara & Maskeen

Fuqara is penny less andMaskeen is needy onePoor & Needy, one or two classes?

The operative criteria which determines poverty is

not how little a person has, but whether it is enoughor not

Basic need includes food & clothing for the personand his family as well as reasonable accommodationand furniture and necessary tools for his trade andmeans of transportation

Richness means owning what is enough for ones need;A person in need qualifies as poor & needy

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AdministratorsAdministrators

Aameleen; Those employed for Collection

and maintenance of record, paid from Zakat,

even if they are richWages should not exceed half the Zakat

collection

Only those employed by State

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Influencing HeartsInfluencing Hearts

Maallafatatil Quloob; Influence hearts

towards Islam thru charity, kindness

This function can be performed only bythe State and not individuals

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Freeing from BondageFreeing from Bondage

Riqab; neck, signifies someonewho is

freed from bondage

Slaves and captives ofwar

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DebtorsDebtors

Gharimeen; Debt, bankruptcy

Condition that debtor himself should not

possess sufficient funds or goods to clearthe debt

Debt incurred for legitimate purpose

incl. Blood money, unexpected penalty

and not due to gambling, drinking,

intoxicants or lavish expense in marriage

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In Way of AllahIn Way of Allah

Fe sabeelillah; Wide interpretation,

implication and application, incl. Jihad,

invitation to Islam, education, anything

serving the cause of Islam

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TravellerTraveller

Ibnis Sabeel; Can be paid from Zakat,

even though he may be rich at home, ifduring the journey he becomes destitute

and unable to meet his expenses to

return

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Hadith on DistributionHadith on Distribution

of Zakatof Zakat Allah has not entrusted the distribution of

Zakat to a prophet, given a message to

convey or to an angel who has a favoredposition with Allah. He Himself has ruled

on its distribution and divided it between 8

groups of people. If you belong to any ofthese, I will give you Zakat. If not then you

may not have any of it

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Where zakat canWhere zakat cantbe usedtbe used

For persons with sufficient / adequate

means of living

For ones dependents like parents,

children.

Trust for investments.

Buying luxury goods.

On wasteful Activities.

On road works and infrastructure.

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Why Pay ZakatWhy Pay Zakat

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Ar-Rum-39

Zakat Increases WealthZakat Increases Wealth

The interestthat you give in orderto increase

the wealth ofthepeople, does not increase inthesight ofAllah:and theZakatthat you pay in

orderto winAllahsapproval, itspayerdo

indeed increasestheirwealth.

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Luqman/04

People who payPeople who pay ZakatZakat areare

SuccessfulSuccessful

Those who establish regular

Prayerand giveregularZakat and

have (in theirhearts) the

assurance ofthe Hereafter.

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Al Baqra

People who will berewardedPeople who will berewarded

Allah deprives Interest ofall blessing and

develops Charity,and Allah does not likean

ungrateful,sinful person. Asto those who believe

and do good deeds,establish Salatand pay

Zakat,they will mostsurely havetheirreward

with theirLord and they will have nothing to fear

norto grieve.

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Zakat isOverand Abovethe Normal SadaqatZakat isOverand Abovethe Normal Sadaqat

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Al-Baqara-177

Zakat isOverand Abovethe Normal SadaqatZakat isOverand Abovethe Normal Sadaqat

It is no virtuethat you turn your facestowards

theeast orthe west,but virtue isthat oneshouldsincerely believe inAllah and the LastDay and

the Angelsand the Bookand the Prophetsand

,out of His love,spend of oness choice wealth

forrelativesand orphans, forthe needy and thewayfarer, forbeggarsand fortheransom of

slaves,and establish Salatand pay Zakat. And

the virtuousarethose who keeptheirpledges

when they makethemand show fortitude inhardshipsand adversity and in thestruggle

between the Truth and Falsehood; such arethe

Truthfullpeopleand such arethe Pious

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Surah Tuba

Punishment for not Paying ZakatPunishment for not Paying Zakat

& those who hoard up gold& silver& do not

spend in the way of Allah, proclaim a grievous

punishment, on the day when it (horded

wealth) shall be heated in the fire of Hell, then

their foreheads& their sides& their backs

shall be branded with it, this is what you

hoarded up for yourself, now taste what you

horded

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Al Bokhari 486, Chapter Zakat

Hadith on PunishmentHadith on Punishment

fornot Paying Zakatfornot Paying Zakat Narated by Abu Huraira

Whoever is made wealthy by Allah and

does not pay the Zakat of his wealth thenon the Day of Resurrection his wealthwill be made like a bald-headedpoisonous male snake with two blackspots over the eyes. The snake willencircle his neck and bite his cheeks andsay, I am your wealth, I am yourtreasure,

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Why Muslims are SufferingWhy Muslims are Suffering "OMuhajirun, 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 beovercome 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 governedby 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."

Ibn Ma a

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SummarySummary

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Zakat Salient FeaturesZakat Salient Features Part ofbasic faith

One

oftheke

y form

of wors

hip

A way to thankAllah Mustbepaid by every one Who havesufficient

income /wealth

Fixed rates 2.5%(general)5%to 20% on NaturalProduce

Mustbepaid every year (lunar)

Payable only to selected people / purpose

Ownership hasto betransferred

Importantto giveto the Rightbeneficiaries

The Payments ofZakatshould notbereduced/avoided

The unpaid pastzakat should bepaid

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PrayerPrayerO my Lord! Be merciful to us

because of (our link with) the Quran;

Make it for us a leader, and a source

of light, guidance and mercy, cause

us to recall from it what we have

failed to understand; give us strength

to recite it day and night; and make it

a plea for our salvation, O Lord of the

worlds Ameen!

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OpenOpenDiscussionDiscussion