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Simplifies the concept of Zakat (Islamic Obligatory Charity) as per Hanafi Fiqh. Part of 'Zakat Simplified' workshop held at Kolkata, India, in June 2014. For more information please visit www.zakatonline.in
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Kala Mandir, Kolkata Sunday, 22 June 2014
22/06/14 Zakat Simplified Workshop
Quiz : True or False 1. Zakat is due every year i.e. if I pay it on 1
January 2014, it will next become due on 1 January 2015
2. Zakat rate is one-fortieth (i.e. 2.5%) of the value uniformly for all items
3. A husband can give Zakat to a wife, but a wife cannot give Zakat to her husband
4. If I have 2 (self-occupied) houses, the extra house is covered under Zakat
22/06/14 Zakat Simplified Workshop
Quiz : True or False 5. Agricultural land is covered under Zakat 6. Factories are covered under Zakat 7. Non-essential items like TV, computer, car
etc. are covered under Zakat 8. The Niyah of Zakat has to be made at the
time of giving Zakat 9. Zakat can be given to organisations 10. A person not liable to pay Zakat, can accept
Zakat
22/06/14 Zakat Simplified Workshop
Answers to Quiz Questions at end of workshop!
22/06/14 Zakat Simplified Workshop
Today’s objectives
• Basics of Zakat • Who is required to pay Zakat? • Which are Zakatable Assets? • How are Zakatable Assets valued? • Who can we pay Zakat to? • Intro to www.zakatonline.in
22/06/14 Zakat Simplified Workshop
BASICS OF ZAKAT
22/06/14 Zakat Simplified Workshop
The Wisdom of Zakat
• Growth • Purity • Balances Inequity • Direct Benefit Transfer • Brotherhood • Reduces Greed • Best investment
22/06/14 Zakat Simplified Workshop
Annual Income
Annual Saving
Wealth / Assets
CONCEPTUAL CLARITY OF ZAKAT
Minus: Expenses
22/06/14 Zakat Simplified Workshop
Zakat-able
Assets
Zakat-able
Assets
CONCEPTUAL CLARITY OF ZAKAT
NISAAB
CHECK…
22/06/14 Zakat Simplified Workshop
Zakat-able
Assets
Zakat 2.5%
CONCEPTUAL CLARITY OF ZAKAT
NISAAB
CHECK…
If Yes
22/06/14 Zakat Simplified Workshop
Some Basics
• Zakat = (Minimum) Obligatory Charity • To be Paid Annually (lunar year) • On select items of Wealth • Valuation as per market price • To be given only to specified people • Err on the side of safety
22/06/14 Zakat Simplified Workshop
ZAKATABLE ASSETS
22/06/14 Zakat Simplified Workshop
Zakatable Assets
22/06/14 Zakat Simplified Workshop
Gold & Silver Cash & Equivalent Trade Stock
Livestock Agriculture Produce Buried Treasure / Mines
Livestock • Only on some animals • Should be mostly Self
Grazing • Nisaab – Camel – 5 – Cow – 30 – Goat / Sheep – 40
• Rates of Zakat – Step based
22/06/14 Zakat Simplified Workshop
Agriculture Production (Ushr) • No Nisaab • Not necessary to
Complete one year • Payable immediately
on harvest • Rates – 10% if rainfed – 5% if irrigated
22/06/14 Zakat Simplified Workshop
Mines / Buried Treasures • No Nisaab • No completion of year • Payable immediately
on extraction • Mines (Gold, Silver,
Brass, Bronze, Iron etc) – 20%
• Buried Treasures – 20%
22/06/14 Zakat Simplified Workshop
Zakat on Gold & Silver
22/06/14 Zakat Simplified Workshop
Zakat on Gold & Silver • Payable on all Gold & Silver (in use, not in
use, decorative etc.) • Deduct value of any stones etc. from jewellery • Value will be as on date of Valuation, in place
where asset is • In case trader in Gold & Silver, Zakatable but
as ‘Trading Stock’ – no double zakat • No Zakat on diamonds, pearls, precious
stones, platinum, Rubies etc.
22/06/14 Zakat Simplified Workshop
Zakat on Gold & Silver • Take Value of 24 carat Gold (per gram) – Value of 22 carat gold is 22/24 of 24 carat value – Value of 18 carat gold is 18/24 of 24 carat value – Ignore workmanship, design costs etc.
• Silver take rate per Kg (as available in market) – Apply to all silver assets – Ignore other costs
22/06/14 Zakat Simplified Workshop
Zakat on Cash & Equivalents
22/06/14 Zakat Simplified Workshop
Zakat on Cash & Equivalents • This is all liquid wealth which is in cash form
or can be converted to cash at short notice • In Bank balances, deduct interest since Zakat
is not payable on impermissible income • Similarly in any investment, if there is any
component of Interest, deduct it • Loans taken (non-business) should be set-off
from these – Business loans we will set off from trading stock
22/06/14 Zakat Simplified Workshop
Zakat on Trade Stock
22/06/14 Zakat Simplified Workshop
Zakat on Trade Stock
• Covers ANY item • Depends on Niyah when purchased • Only on production / trading stock – Damaged Goods – Obsolete / Dead Stock
• Value as per market rate (not cost price) • Tools of trade are not covered • Shops / offices / factories not covered 22/06/14 Zakat Simplified Workshop
Zakat on Trade Stock
• Debtors & Creditors need to be adjusted – Doubtful Debts – Bad Debts
• Loans taken / given for business also • Zakat on Partnership Business /
Companies
22/06/14 Zakat Simplified Workshop
DEMONSTRATION
22/06/14 Zakat Simplified Workshop
My factory
22/06/14 Zakat Simplified Workshop
My showroom
22/06/14 Zakat Simplified Workshop
My Home
22/06/14 Zakat Simplified Workshop
My second home
22/06/14 Zakat Simplified Workshop
My home items
22/06/14 Zakat Simplified Workshop
ELIGIBILITY FOR PAYING ZAKAT
22/06/14 Zakat Simplified Workshop
Conditions for Zakat
• Muslim, Baligh, Aqil • Owner & Possessor of the Property • Completion of one year (Haul)
22/06/14 Zakat Simplified Workshop
Sahib-e-Nisaab
• Gold – 87.48 grams • Silver – 612.32 grams • Or Cash or Trade Stock equivalent Nisaab Today (June 2014): Rs. 26,000 approx Haul – as per Lunar Calendar
22/06/14 Zakat Simplified Workshop
Sahib e Nisaab
22/06/14 Zakat Simplified Workshop
If
Is More Than Rs. 26,000
Then Pay Zakaat @ 2.5% of TOTAL VALUE (not minus Nisaab)
Haul
22/06/14 Zakat Simplified Workshop
Lunar Month 1 2 3 4 5 6 7 8 9 10 11 12
Net
Zak
atab
le
Asse
ts
Nisaab
Zakat Payable
on*
(* as per Hanafi Fiqh)
Haul
22/06/14 Zakat Simplified Workshop
Lunar Month 1 2 3 4 5 6 7 8 9 10 11 12
Net
Zak
atab
le
Asse
ts
Nisaab
Zakat Payable
on*
(* as per Hanafi Fiqh)
Haul
22/06/14 Zakat Simplified Workshop
Lunar Month 1 2 3 4 5 6 7 8 9 10 11 12
Net
Zak
atab
le
Asse
ts
Nisaab
Zakat Payable
on*
(* as per Hanafi Fiqh)
Haul
22/06/14 Zakat Simplified Workshop
Lunar Month 1 2 3 4 5 6 7 8 9 10 11 12
Net
Zak
atab
le
Asse
ts
Nisaab
Zakat Payable
on*
(* as per Hanafi Fiqh)
ZAKAT VALUATION / CALCULATION
22/06/14 Zakat Simplified Workshop
22/06/14 Zakat Simplified Workshop
22/06/14 Zakat Simplified Workshop
22/06/14 Zakat Simplified Workshop
22/06/14 Zakat Simplified Workshop
22/06/14 Zakat Simplified Workshop
WHO CAN WE PAY ZAKAT TO?
22/06/14 Zakat Simplified Workshop
Wealth / Assets
Non- Essential
Assets
WHO CAN RECEIVE ZAKAT?
Zakatable
Assets
22/06/14 Zakat Simplified Workshop
Non- Essential
Assets
WHO CAN RECEIVE ZAKAT?
Zakatable
Assets NISAAB
How to Verify: Taharri
22/06/14 Zakat Simplified Workshop
Eligible recipients for Zakat 1. Faqeer: poor; one who has some money, but not
sufficient for his basic needs 2. Miskeen: destitute; one who has nothing 3. Amileen: zakat collector, appointed by the
Caliph 4. Mu'allafah Qulubuhum : to soften the hearts 5. Riqaab: to slaves to purchase their freedom 6. Gharim : one in debt for a legitimate reason 7. Fi Sabeelillah: in the path of Allah 8. Ibnis-Sabeel: wayfarer; one stranded away from
home, with no money available to him
22/06/14 Zakat Simplified Workshop
People who cannot be given Zakat
• Non-Muslims • Well-off people • Relations of birth – upward and downward • Relations of marriage • Employer or Labourer, as wages • Children of the family of Bani Hashim – Prophet Muhammad’s family, Hazrat Ali’s family
etc • An organisation / institution (except as agent)
22/06/14 Zakat Simplified Workshop
Zakat Payment
• Neeyah • Make complete owner • Not as compensation for work done • Not only in Ramadan • Giving Zakat in non-cash form – medicines / clothes / food
22/06/14 Zakat Simplified Workshop
Zakat Etiquettes • Seek out the deserving • To permitted relatives first • Give with humility • Pay in secret, preferably • Need not mention its Zakat • Don’t ruin by reminder and
injury • Need not explicitly mention it
is Zakat
22/06/14 Zakat Simplified Workshop
Zakat Neeyah
• At time of segregation Direct Payment • At time of payment to recipient • After payment until it is with recipient Payment Through Agent • At time of payment to agent • After payment until it is with agent
22/06/14 Zakat Simplified Workshop
WWW.ZAKATONLINE.IN
22/06/14 Zakat Simplified Workshop
Why www.zakatonline.in
• Online site with Zakat information • Eases Calculation • Advanced Calculation features • Allow e-payment • Partnership with organisations • Run Campaigns • Umbrella for charitable causes
22/06/14 Zakat Simplified Workshop
22/06/14 Zakat Simplified Workshop
www.zakatonline.in
22/06/14 Zakat Simplified Workshop
www.zakatonline.in
Lets check: True or False 1. Zakat is due every year i.e. if I pay it on 1 January
2014, it will next become due on 1 January 2015 – False. Its due at end of lunar year, not solar year. Hence, every
355 days i.e. after 1 Jan 2014, it would become due around 21 Dec 2014.
2. Zakat rate is one-fortieth (i.e. 2.5%) of the value uniformly for all items – False. Although the general rate for standard items (like gold,
silver, jewellery, stock) is 2.5%, it is different for items like agricultural produce (5%-10%) and buried treasures (20%).
3. A husband can give Zakat to a wife, but a wife cannot give Zakat to her husband – False. Zakat cannot be given within relation of marriage
(Hanafi Fiqh)
22/06/14 Zakat Simplified Workshop
Lets check : True or False 4. If I have 2 (self-occupied) houses, the extra house is
covered under Zakat – False. Houses are not covered under Zakat, unless they are
bought with the intention of selling them. 5. Agricultural land is covered under Zakat
– False. There is no Zakat on any land, unless it is bought with the intention of selling.
6. Factories are covered under Zakat – False. Factories are not covered under Zakat.
7. Non-essential items like TV, computer, car etc. are covered under Zakat – False. There is no Zakat on these items.
22/06/14 Zakat Simplified Workshop
Lets check : True or False 8. The Niyah of Zakat has to be made at the time of giving
Zakat – False. Niyah can be made either at the time of segregation of
Zakat money, at the time of giving Zakah, or even after giving, until it is not used by the recipient.
9. Zakat can be given to organisations – False. Organisations are not covered under Zakat recipients.
They can be entrusted Zakat money only as agents to give it to eligible recipients.
10. A person not liable to pay zakat, can accept Zakat – False. For a person to be eligible to receive Zakat, not only his
‘Zakatable ‘assets should be below Nisaab but even after adding his ‘non-essential’ assets, it should be below Nisaab.
22/06/14 Zakat Simplified Workshop
Remain in Touch
• Website: www.zakatonline.in • Email: [email protected] • sms TSSF ZAKAT <email address> to
07860005444
22/06/14 Zakat Simplified Workshop
Thank You