As one of the five pillars of Islam, Zakat is incumbent upon Muslims who fall into certain categories – these are outlined in the Qur’an in Surah Al Taubah (verse 60). Muslims are required to donate 2.5% of their wealth, above a minimum threshold. This annual form of charity is known as Zakat.
Spiritual, social and economic benefits of Zakat
Zakat encourages Muslims to donate graciously and generously and holds us as Muslims accountable for our wealth. It is a reminder that our wealth is not ours alone; it has been bestowed upon us by Allah (SWT) and is a test from Him. The word ‘Zakat’ means purification. The act of paying one’s Zakat serves to purify the soul as we endeavour to share what is ours with those who are less fortunate instead of spending on worldly desires or hoarding our wealth. Donating Zakat annually offers us an opportunity to renew our self-discipline and creates a connection between the giver and the recipient.
How to utilise Zakat in 2016
Zakat is calculated as a percentage (2.5%) of wealth you have possessed and are wholly able to dispose of for a lunar calendar year 2016, above a “nisaab” value. Nisaab is calculated as a certain weight in gold or silver, depending on the composition of your wealth. Usually the Nisaab value is calculated based on 595 grams of silver. This year the minimum threshold of wealth you must have held for an entire year before paying zakat is £195 or US$306.
Short term and long term liabilities are deducted against your assets for your final zakat calculation. So any (halal) debts that you owe, any business costs, taxes or other liabilities that you expect to pay in the next year should be deducted before making your final calculation.
Mansoor is an impartial resource to help you calculate your zakat for 2016 in an authentic professional way and helps you decide where to pay your zakat. You may also have zakat payments that you have forgotten or neglected to make in previous years. Mansoor advisory is packed with analysis and knowledge of zakat from a Shariah perspective.
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