If a person has some savings in the bank, how and when should he pay zakah? To whom he should pay it? If he holds his savings for a number of years, is one payment of zakah enough or he should pay it every year? S. Hussaini
Zakah is payable every year by every Muslim, male or female, provided that the person concerned has more than the threshold of zakah, and he has held that for a year. This means that there is a threshold of zakah, i.e. nisab, which means a minimum amount. If you have less than that threshold, then you are not required to pay annual zakah. If you are a zakah payer for a number of years, then you encounter adverse circumstances that bring your assets to below the threshold of zakah, then you do not pay zakah for the current year when you have less than the threshold. The threshold is equivalent to the value of 85 grams of gold over and above what you need to maintain yourself and your dependents.
Everyone of us should mark the day when he or she begins to own the threshold of zakah, because this is their zakah date. Every year, on the same day, they should check what they own. If it is over and above the threshold of zakah, they should pay zakah on all they have, over and above what they need for their living expenses. The rate of zakah is in most cases 2.5 percent of the total amount. Certain types of property carry a higher rate, such as agricultural produce that is irrigated by rainwater only. The zakah rate for this type of produce is 10 percent. On your zakah date, you calculate your zakah liability and put it aside. You then pay it to those who qualify as beneficiaries.
Zakah is unlike income tax, which is levied on earnings. Zakah is due on both capital and income. Hence, it is low rate.
Zakah is paid to eight groups of people. They are mentioned in verse 60 or surah 9, which is translated as follows: “Charitable donations are only for the poor and the needy, and those who work in the administration of such donations, and those whose hearts are to be won over, for the freeing of people in bondage and debtors, and to further God’s cause, and for the traveler in need. This is a duty ordained by God, and God is All-knowing, Wise.”
It is clear that bank savings are zakahable, every year, as long as the saver is a zakah payer, i.e. owning more than the threshold of zakah.
Paying zakah for God’s cause
Could you please explain the category ‘to serve God’s cause’ as one for which zakah funds may be utilized? This seems to be a rather undefined category. How do we spend such allocated zakah funds? A.R.
The Quranic verse that defines the beneficiaries of zakah is verse 60 in surah 9. It translates as follows: “Charitable donations are only for the poor and the needy, and those who work in the administration of such donations, and those whose hearts are to be won over, for the freeing of people in bondage and debtors, and to further God’s cause, and for the traveler in need. This is a duty ordained by God, and God is All-knowing, Wise.” Whereas the first four categories are preceded by the preposition ‘to’, the other four are preceded by ‘for’. There is a clear difference between the two. In the case of the first four, you have to give zakah to them so that they own it, while in the other four categories, you can take action to relieve the situation. Thus, in the case of an insolvent debtor, you may pay zakah directly to his creditor, so that the burden of debt is reduced or removed. In the case of a stranded traveller, you can buy his train or plane ticket, or pay his travel expenses in some other way, to enable him to reach his home.
Scholars of olden days defined “fi sabeel Allah”, or ‘furthering God’s cause’, as “Jihad and Haj”. This means that one can pay someone to meet the expenses of pilgrimage, or to assist in a campaign of Jihad. Contemporary scholars widen the definition further so as to include whatever improves the conditions of the Muslim community in general, helping people to be able to stand on their feet or to achieve excellence in their fields. One area mentioned in particular is education. Thus, it is perfectly acceptable to pay a student his school or university fees, or to buy his books, or his living expenses during his education. He may not be poor, but he may be unable to meet all the expenses of his education.
There is no doubt that enabling the community to have enough scholars, scientists, doctors, engineers, etc. contributes well to furthering God’s cause. The Muslim community should have enough of these to meet all its needs so that it becomes self-sufficient in all areas, able to protect itself against its enemies and to ensure steady progress and prosperity for all its citizens.
