The fourth pillar of Islâm is Zakâh. Zakâh is a Mâlî Ibâdah (a worship fulfilled with wealth) performed annually.
Zakâh is to give one-fortieth (2.5%) of one’s wealth annually to one of the eight classes of people specified in Qur’ân Al-Karîm.
The conditions that render Zakâh Fardh (obligatory): An adult, sane, free and debtless Muslim who is in possession of the Nisâb amount of wealth, in excess of their basic needs for a complete lunar year is obliged to pay the Zakâh. This wealth should further be of productive nature. Although gold and silver are not productive, their Zakâh should be given when they reach the amount of Nisâb.
Nisâb: It is a religious standard to determine the liability of paying Zakâh. Nisâb is to possess 20 mithqâl (80,18 grams) of gold or an equivalent amount of money or trade goods in excess of one’s debts and basic needs. The basic needs include a house and its furniture, clothes, tools, books, a vehicle (or a horse) and some provisions. One-fortieth (2.5%) of the taxable amount of money has to be given as Zakâh.
(ELIGIBLE ZAKÂH RECIPIENTS)
The eligible Zakâh recipients are specified in the 60th Ayah (verse) of Sûrah Al-Tawbah.
1. The poor who do not have the Nisâb,
2. The needy who have nothing in life (Al-Masâkîn),
3. The officials in charge of collecting Zakâh,
4. Those who have inclined towards Islâm by recieving Zakâh (Muallafah Al-Qulub),
5. People in bondage,
6. People burdened with debts,
7. People who are in the path of Allâh,
8. Travelers stranded without money.
Zakat can be given to any of these eight categories mentioned above. However, the most deserving people to receive the Zakâh are the needy with nothing in life and those who are striving in the cause of Allâh.
Nisab Value (28.04.2022):
Using value of gold £3,447 (80.18g) – approximately