Zakat (Alms) PART TWO
Zakat (Alms)
Zakat Of Salaries
The condition of yearly term maturity applies to the commodities on which the Lawgiver said Zakat is due,
and this includes silver, gold, modern paper currency
and livestock. Paper currency is analogous to silver,
therefore, it takes the case of silver.
There is no Zakat on salary, earned income from
wage earners or professionals or independent contractors
until such money matures in a full year.
There is no such thing as paying your Zakat
on the day you receive your pay check.
What the wage earner must know is that he or she
can purify that money with charity (sadaqah)
anytime they cash the pay check.
Allah (SWT) states: "And in their wealth and possessions
(was remembered) the right of the needy,
he who asks and he who (for some reason)
was prevented (from asking)." (Al-Qur'an, 51: 19).
We can deduce from the concept of "yearly maturity"
of wealth on which Zakat is due as encouraging,
among other things, saving on the part of the Zakat payer,
and enhances the chances for eradicating poverty,
because if the poor receives his rightful share of Zakat
there will be the possibility that he can take Zakat
money and invest it and become a Zakat payer
instead of recipient. This possibility will be lost if
he receives few Zakat dollars every month.
To say that the wage earner just brings his check
home and spends everything on necessities and
lives from check to check with nothing left over means
the person is eligible for Zakat.
Using farm produce as analogous to salary for Zakat
is wrong analogy. As Imam Al-`Abadi said,
these are two different categories of money.
$2, 500.00 cash can be invested by the person
and expect a good return whereas it will be difficult
to invest a bushel of corn. It can be traded as a
commodity, which is what it is.
This why we must know that analogy has rules that
must be followed before it is applied.
Certainly the jurists are unanimous that earned income,
known as almal al-mustafadah,
should either be added to existing money and wait until
that amount reaches maturity and then give their Zakat;
or if there is no money on hand the time one
possesses this money, he or she should wait
one full year before assessing it for Zakat.
Zakat is one of the five pillars of Islam and a vital element
in the religion of Islam. It is the twin sister of Salaat.
In Al-Qur'an, Allah (SWT) stated:
"So establish regular Prayer and give regular Alms;
and obey the Messenger; that you may receive mercy."
(Al-Qur'an, 24: 56) Also, "...
Establish regular Prayer and give regular Alms,
and loan to Allah a beautiful loan..."
(Al-Qur`an, 73: 20) "And they have been commanded
no more than this: to worship Allah, offering Him sincere devotion, being true (in faith); to establish regular Prayer
and to practice regular charity; and that is the religion right
and straight." (Al-Qur`an, 98: 5)
In a famous Hadith reported by `Umar Bin Khattab (raa),
the Messenger of Allah (saws) responded to Jibreel (as)
and said: "... Islam is to testify that there is no deity but
Allah and Muhammad is the Messenger of Allah,
to perform the prayer, to pay Zakat, to observe fasting
in Ramadan, and to make pilgrimage to the house
of Allah if you are able to do os..."
(Bukhari, Muslim)
There is consensus among Muslim scholars
that it is mandatory on every believer who is financially able. Whoever knowingly denies this obligation,
while he possesses the minimum amount,
would be considered a disbeliever and
a renegade from Islam. Whoever is stingy,
or tries to cheat, is considered among the wrongdoers.
Zakat is mandatory on four categories of items.
1. Farm produce of seeds and fruits, such as wheat,
barley, rice, dates, raisins, cocoa, pistachios, coffee,
cashews. Allah (SWT) stated: "O you who believe,
give of the good things which you have (honourably)
earned, and of the fruits of the earth which
We have produced for you..." (Al-Qur'an, 2: 267) Also: "...
But render the dues that are proper on the day that
the harvest is gathered..." (Al-Qur'an, 6: 141) Thus,
these two verses and many others indicate that
Zakat is due on farm products that reached the minimum amount (nisaab). No farm product is liable for
Zakat unless it is a product that is considered as
food and can be stocked or saved naturally without refrigeration. If the produce is perishable fruit,
such as grapes, there is no Zakat.
But if one sells them they will pay their Zakat
on the profit earned when it matures.
The nisaab is 612 kilos, which equals 1,346.40 lb.
There is no Zakat on produce that is less than this amount.
If the farm produce or crops grow dependant on rainwater,
or without any man's labour or irrigation, Zakat due is
one-tenth of the total. If it is grown by irrigation,
then the Zakat due is half of one-tenth of the total produce. There is no Zakat on fruits like apples or oranges or
vegetables which are perishable and need refrigeration
for long storage, but they should be considered as any
income if the profit earned from their sale reaches
the amount of Zakat, then Zakat should be given.
2. Cattle, including camels, cows, sheep and goats,
that are freely graze and are raised for trade and production. For Zakat to be obligatory, the number must reach the nisaab. The nisaab of camels is five, of cows 30,
of sheep and goats, 40. By freely grazing is meant
the animal goes out to feed without the owner buying or bringing it feed or hay. If it is not a grazing animal,
there is no Zakat in the stock by itself. The stock will,
however, be considered as articles of trade, then will be assessed for Zakat as articles of trade when the profit
earned from their sale reaches the amount by itself
or in combination with other articles of the trade.
3. Merchandise and goods of trade and commerce.
This includes anything that is obtained for the business of buying and selling: land, animals, food provisions, fabric,
cars, spare parts, etc. This inventory is evaluated annually
and assessed for Zakat, whether the value is the same
as the amount spent on it, more, or less.
The owners of grocery stores, like any other business,
must evaluate every item and give their Zakat.
Simple bookkeeping of inventory, orders,
cash on hand, and credits, that is non-delinquent loans,
will give one a good picture of the Zakatable assets.
But if one is unable to account for everything in the store
or shop, he should assess it according to his ability
until he is sure that his conscience is clear.
There is no Zakat on what is within one's dwelling or
property which includes food, drinks,
furniture, houses, animals, cars, clothes and shoes.
The only exception is gold and silver.
There is no Zakat on assets from rentals or lease,
whether they are apartment units, taxi cabs, etc.
That is, there is no Zakat on the apartment units,
buses or cars for rental like yellow cabs company or trucks
for rental or equipments. But there is Zakat on the proceeds
or incomes from these rental assets if these assets
reach the executable amount,
either by themselves or in combination with other assets.