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Zakat is the prosperity, development, and social security of the economy

Zakat is the prosperity, development, and social security of the economy.

# What is Zakat?
Zakat is one of the five pillars of Islam. Allah has mentioned Zakat innumerable times in the Holy Qur’an.  The importance of Zakat is immeasurable as Allah has said in the Holy Qur’an to perform Zakat as many times as He said to perform salat. Zakat means to increase with purity, here it is said to increase the purity of wealth and at the same time, it is said to increase wealth.  Remember that zakat is the right or debt of the poor, so it is necessary to pay the debt.

Zakat | ST Reliance Associates (STRA)
Zakat | ST Reliance Associates (STRA)

# Purpose of Zakat:
The purpose of zakat is to provide social security economically considering poverty.

# Zakat calculation period:
It’s a lot like Fiscal year or Accounting year, we have a company like XYZ Ltd.  We can calculate the period of January-December as well as July-June. Just like zakat can be calculated according to the own wished time that is, your wealth or money is nisab amount or zakat payable one year from when it will be. But usually, we calculate Ramadan to Ramadan.

# Means of collecting Zakat:
1.  In the case of crops or grains, zakat can be calculated through crops or grains, but if anyone wants, he can give it through the same amount of money.
2.  In the case of cattle, zakat can be calculated through cattle or the same amount of cash.
3.  In the case of gold, zakat can be calculated through a portion of gold or cash.
4.  In the case of silver and cash, zakat has to be calculated through cash.
5.  In the case of business goods (raw materials, stocks, cash bills, debtors, etc.) Zakat has to be calculated through cash.

# Who will pay Zakat:
Zakat can be given to 6 classes of people
1.  Fakir.
2.  Miskin.
3.  The salary of those who will work in the Zakat Fund.
4.  People of other religions.
5.  For the release of slaves.
6.  To repay the debt of the debtor.
7.  Those who work in the way of Allah are oppressed in one word.
8.  Traveler or traveler – if he becomes destitute while traveling or traveling.
Note that he will be rich in his own area though.

# Who will pay zakat
Zakat should be paid only if the amount of nisab is wealth, that is, if one has nisab amount of wealth or wealth worthy of zakat, then he should pay that zakat

# Zakat eligible assets and zakat rate

1.  In the case of cattle:

  • If there are 25 camels, then 1 camel or the same amount of zakat should be paid.
  • If there are 30 cows, 1 cow or the same amount of Zakat should be paid.
  • If there are 40 goats, 1 goat or the same amount should be paid as Zakat.

2.  Crops:
Crops that can be stored for a long time such as paddy, wheat, maize, jaggery, dates, etc.  Zakat should be paid only if the amount of grain is 18 mana 30 kg.
Rate of Zakat on crops or grains:

  • If irrigation is done then 1/20 (one-twentieth) or the same amount.
  • If not irrigated then 1/10 (one-tenth) or equal amount.

3.  In the case of gold:
If the gold is seven and a half ounces (7.5) then Zakat should be paid at the rate of 2.5%.  In this case, zakat has to be calculated according to the market price of gold.

4.  Silver or cash equivalent:
Zakat is to be paid at the rate of 2.5% on the amount of cash withdrawn (52.5) or the amount of cash, bank deposit, DPS, FDR, loan to someone, etc.

5.  In the case of business investment:

  • If there is ownership, then zakat should be paid on raw materials, goods, cash, bank deposits, etc. on the specified date of the business.
  • If you become a shareholder of the partnership business or business in this case and on your share or shares of business raw materials, goods, cash, bank deposits, etc.

Note that in both cases, if a loan is taken for raw material or goods, then part of the loan will be deducted.  However, loans taken for acquiring any fixed assets or long term loans will not be excluded as it has been taken for the purchase of fixed assets.

# Zakat free wealth
1.  Zakat does not have to be paid on houses, land, flats, etc. However, there is a condition that if someone has a business of sale of houses, land, flats, etc., then zakat has to be paid on the property on a certain date.
2.  Zakat is not required on used cars.  However, if the car selling and buying is a business, then zakat has to be paid on the registered car on a certain date.
3.  Zakat does not have to be paid on daily used furniture and equipment, but if it is a business then zakat has to be paid.
“In a word, zakat is not to be paid on used goods and fixed assets, but if fixed assets or used goods are traded, then zakat is to be paid.”

# What is excluded from Zakat:
If a loan is taken to acquire zakat-worthy wealth, it will be deducted from the zakat-worthy property.
For example, Mr. Karim has taken a loan of Rs. 1,000,000 lakhs to build a house.  At the end of the year, the amount of Zakat-worthy assets of Mr. Karim is Rs. 1,500,000 lakhs, now Mr. Karim cannot deduct his debt of Rs. 1,000,000 lakhs while calculating Zakat because he did not take that loan to acquire Zakatable assets.

# Last word: Let us stand by the helpless people of the society along with the satisfaction of Allah by collecting zakat properly by calculating zakat during this epidemic and also play a role in dealing with the current economic recession.

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