Zakaah Intention (niyyat) must be present in ones mind at the time of payment or when zakat money is set aside

from ones asset. Since the payment of zakat is an act of worship, its validity depends upon the expression of ones intention. Zakat payer should make up his mind, with all his heart, that zakat is an obligation to be discharged for the sake of Allah. Zakat must be paid immediately at its due time. It is permissible for zakat to be paid in advance. Zakat is a test from Allah to his servant, people naturally love wealth, but the sign of true faith is to sacrifice what is loved for the sake of Allah. Therefore, zakat is a critical test to ones faith. Severe consequences for not paying Zakat

Allah says "... and those who hoard gold and silver and spend them not in the way of Allah announce unto them a most grievous penalty. On the Day, when they (gold and silver) will be heated in the fire of Hell and used to brand their foreheads, their flanks, and their backs. This is what you have hoarded for yourselves, taste you then what you have hoarded." (Surah At- Tawbah (9:34-35) What is meant by "hoarded" here is every wealth on which Zakat was due but was not paid. The Prophet (SM) said, "Whoever is made wealthy by Allah and does not pay the Zakat of his wealth, then on the Day of Resurrection his wealth will be made like a baldheaded poisonous snake with two black spots over the eyes. The snake will encircle his neck and bite his cheeks and say, 'I am your wealth, I am your treasure.' " Then the Prophet recited the holy verses: "And let not those who covetously withhold of that which Allah has bestowed on them of His Bounty (Wealth) think that it is good for them (and so they do not pay the obligatory Zakat). Nay, it will be worse for them; the things which they covetously withheld shall be tied to their necks like a collar on the Day of

Resurrection. And to Allah belongs the heritage of the heavens and the earth; and Allah is Well Acquainted with all that you do." (Al-Imran 3:180) (Hadith Vol 2: #486 of Sahih Bukhari) The Benefits of Zakat Zakat constitutes one of the five pillars of Islam. Zakat is indispensable for the Muslim community as it achieves reform, both financially and spiritually. Allah has enjoined upon rich Muslims a due to be taken from their properties corresponding to the needs of the poor among them. By giving zakat, it purifies and sanctifies the assets and purifies the heart of the zakat payer from selfishness and greed for wealth and develops his sympathy for the poor and needy. Zakat money helps the Recipients of zakat to meet their requirements and removes class distinctions and develop sense of good relations and co-operations among rich and poor and help improve tranquility and peace in the society. Truly those who believe, and do deeds of righteousness, and perform AsSalat (Iqamat-as-Salat), and give Zakat, they will have their reward with their Lord. On them shall be no fear, nor shall they grieve.(Surah Baqarah 2:277) Calculating Zakat Rate of Zakat varies on nature of wealth. a) 2.5% as in Zakat due on gold and silver, cash & deposits, trading goods, work earnings, revenues & profits etc according to the opinion held by the majority of scholars. b) 5% as in Zakat due on crops and fruits that are irrigated by tools and equipment (with irrigation costs). c) 10% as in Zakat due on crops and fruits that are irrigated by springs and rain (without irrigation costs). d) 20% as in Zakat due on mineral resources. A property is counted for Zakat after the lapse of a full lunar year(354 days) if it reaches the Nisab, for example Gold, Cash, Commercial Merchandise etc., zakat is due @2.5%. In case the budget is linked to the solar year(365days), the solar calendar can be applied provided that the percentage of Zakat is raised to 2.577% instead of 2.5% so as to make up for the difference between the two calendars.(However, this condition does not apply to fruits and other crops.) One who prefers to pay Zakat on gold and silver in cash may multiply the amount counted for Zakat by the rate of grams. This will give the amount of Zakat in cash. For example, in case the amount of gold liable to Zakat is 85 grams and a gram value is Taka1464.00, we may reach the amount

of Zakat payable in cash by making use of the following equation: The amount of Zakat = 85 grams (of gold) x 1464 Taka (the rate of gram) = 124,440 Taka on which Zakat is due @ 2.5% = Taka 3111.00 Similarly market price of Silver is Taka 47.00 per gram, Value of 595 grams of Silver 595 x 47 = Taka 27965.00 on which Zakat is due @2.5% = Taka 699.125 How Much to Pay in Zakat: Zakat is only required of those who have wealth beyond a certain amount to meet their basic needs (called nisab in Arabic). The amount of money paid in Zakat depends on the amount and type of wealth one possesses, but is usually considered to be a minimum of 2.5% of a person's "extra" wealth. The specific calculations of Zakat are rather detailed and dependent on individual circumstances, so Zakat calculators have been developed to assist with the process. Almsgiving or charity (Zakat) given to the poor. It benefits the poor and it helps the giver by moving him towards more holiness and submission to Allah. Alms-giving is considered a form of worship to God. Zakat: The financial obligation upon Muslims. An important principle of Islam is that everything belongs to God, and that wealth is therefore held by human beings in trust. The word Zakat means both "purification" and "growth." Our possessions are purified by setting aside a proportion for those in need and for the society in general. Like the pruning of plants, this cutting back balances and encourages new growth. Each Muslim calculates his or her own zakah individually. This involves the annual payment of a fortieth of one's capital, excluding such items as primary residence, car and professional tools. An individual may also give as much as he or she pleases as sadaqah, and does so preferably in secret. Although this word can be translated as "voluntary charity" it has a wider meaning. The Prophet said, "Even meeting your brother with a cheerful face is an act of charity." The Prophet also said: "Charity is a necessity for every Muslim." He was asked: "What if a person has nothing?" The Prophet replied: "He should work with his own hands for his benefit and then give something out of such earnings in charity." The Companions of the Prophet asked: "What if he is not able to work?" The Prophet said: "He should help the poor and needy." The Companions further asked: "What if he cannot do even that?" The Prophet said: "He should urge others to do good." The Companions said: "What if he lacks that also?" The Prophet said: "He should check himself from doing evil. That is also an act of charity."

ZAKAT RULES IN ISLAM ---Guidelines And perform Salat, and give Zakat and obey the Messenger (Muhammad SAW) that you may receive mercy (from Allah). (Surah An-Nur-56) In an authentic hadith, the Prophet (peace be upon him) said to his Companion Mu`adh, when he was sent to Yemen as governor, "Tell them that Allah has made Zakah obligatory for them, that it should be collected from the rich and distributed among the poor."

What is Zakat? Zakat is one of the fundamental ibadah (religious worships) of Islam. Every Muslim has to believe in the obligation of Zakat and at the same time has to give Zakat regularly if he/she has an amount of money, called "Nisab [the required amount of wealth]. Zakat is as mandatory as performing Salat or keeping fast in Ramadan. It is one of the basic pillars of Islam. In the holy Quran in various surahs the rulings of Zakat are narrated alongside Salat. Allah (SWT) mentions: And perform As-Salat (Iqamat-as-Salat) and give Zakat and bow down (or submit yourselves with obedience to Allah) along with Ar-Rakiun (surah: 2:43). The Prophet (PBUH) says Worship Allah; dont associate others with Him (Allah); perform Salat, give Zakat and keep fasting (Sahih-al-Bukhari). Zakat: Obligatory on Whom Zakat is obligatory on every Muslim man and woman, who is adult and in good mental condition. Paying Zakat is compulsory for any Muslim who attains "Nisab [the required amount of wealth] in excess of his/her basic needs and that have stayed in his/her possession for one whole lunar year. If any Muslim attains the status of Nisab but has debt, he/she can exclude the debt from the amount on which Zakat is due and if after the deduction yet he/she continues the status of Nisab then he/she has to pay Zakat. If any person doesnt pay Zakat even though being it compulsory on him/her, he/she has to pay the overdue Zakat of previous year (the year s/he has not realized). Zakat is not mandatory for the minors or the insane. They are not subject to abiding by Shariah instructions. However, if the insane was in order while attaining the status of Nisab (the start) and regains his/her mental order during the completion of the year s/he has to pay Zakat money although s/he remained out of order mentally in between the start and end of the Nisab year. Basic Needs Assets of basic needs and daily necessities are exempted from Zakat. These items means -Properties owned to meet one's basic requirements such as dwelling houses, work tools, machines, means of transport, furniture, clothings, foods, utensils & household effects etc.

The Nisab The minimum standard of surplus wealth over which Zakat is charged is known as Nisab. Nisab amount refers to the market value of 595 grams of silver or 85 grams gold or value of commercial goods or cash equivalent to value of Nisaab level gold or silver. If Nisab wealth after meeting all expenses for such basic necessities as food, clothes, housing etc. continues to be in possession of any Muslim for one lunar year, it is compulsory for him/her to pay Zakat @2.5%. It is to be noted that the Nisab should continue a whole lunar year. If the Nisaab amounts drops down temporarily in-between the lunar year, Zakat is to be paid. The condition of completion of one lunar year is not applicable to every individual item of the wealth rather the Nisab as a whole. However, if at the beginning of the year the wealth appears equivalent to Nisab level and at the end develops more than the Nisab then Zakat has to be calculated based on the latest amount. In case of Zakat being mandatory, the basic Nisab has to complete a lunar year, not the entire items resources. The religious principles make Zakat, Zakatul Fitr, Qurbani, and Hajj subject to doubtless ownership or possession and the right of disposal of the wealth. Assets not liable for Zakat Zakat is not charged on land, houses/buildings, shops, workshop, capital machineries/spares, working tools & appliances, office furniture/ equipments, vehicles/ boats/ launch/ ship/ aeroplane used for means of transport, cattle for farming and transport, vehicle for personal use, personal clothings, utensils, domestic hens/ducks/birds etc. Money dedicated to the repayment of debts is not liable for Zakat. Assets liable for Zakat (1) Gold/silver (2) Hard cash (3) Commercial goods (4) Grazing cattle (5) Agricultural products attain Usahr status (6) Land/buildings/plot used for real estate business. Moreover, Zakat is charged upon promises (mannat), compensation for any commission of bad deeds and omission of good deeds (kaffara), money saved for Hajj and Qurbani and Womans Dowry money are liable for Zakat on expiry of one lunar calendar year. Zakat on Gold, Silver and Ornaments & Objects The Nisab for gold is approximately 85 grams and for silver is approximately 595 grams both being owned for one year. Zakat upon gold or silver in such form as bars, or jewelries or in use or unused is always chargeable if it reaches Nisab. Objects, made of gold and silver are treated like gold and silver. Zakat on precious items such as platinum, diamond, white gold has to be paid if purchased as asset or to stockpile money. In a Hadith it is reported that a woman came to the Prophet (SAW)

accompanied by her daughter in whose hand there were two bulky bracelets made of gold. The Prophet (SAW) asked the mother: "Do you pay Zakat on these? She answered "No". The Prophet (SAW) said: "Would you like that Allah exchange them for two bracelets made of fire (you'd wear on the Day of Judgment)? They answered: 'No. He said, Then pay the zakat which is due on what you wear on your wrists. "(Reported by Imam Abu Dawood).

Zakat on Cash, Deposits, Shares & Securities Zakat is chargeable upon expiry of lunar year in compliance with necessary conditions on items such as Cash, Bank Deposits, Postal Savings, Foreign Currencies(Cash, in FC account, Travellers Cheques, Wage Earners Bond etc), Company Shares, Mutual Fund, Bond, Debenture, Saving Certificates, Hoarded Goods, Prize Bond, Insurance Policy (deposited instalments), Share & Deposits with Co-operative Societies, Postal Savings Certificates, Deposit Pension Scheme, and any deposit to any Safety Funds. On the other hand, contribution of employee to Provident Fund is subject to Zakat. The contribution of employer to the provident fund will be counted for Zakat only after received by the employee. Pension money if received shall be subject to Zakat. How to Calculate Zakat on Share Share is the partnership right over the ownership of capital of a company. Those who have purchased shares with the intention to accrue profit through selling and buying they have to calculate Zakat on the basis of market value of shares. Those who have purchased shares with the intention to have revenue/profit they have to calculate Zakat based on the portion of Current Asset on which Zakat is due. For example: one share has market value of TK100.00 out of which 58% is against fixed assets (land, buildings, capital machineries etc which are not liable for zakat) and 42% is against current assets (cash, finished goods or raw materials etc. which are liable for zakat) then Zakat is chargeable on 42% i.e. on current assets. In order to reach appropriate calculation the shareholders need to know from the company, the exact amount of Zakatable asset possessed by the Company against each share. If the shareholder does not have knowledge of the company accounts, he may simply pay Zakat on the annual share revenues/dividend earned on his share at the rate of 2.5% Zakat on Commercial Merchandise Commercial merchandises represent those are purchased for exploitation in trade, finished goods, in manufacturing process, raw and packing materials, Import-Export commodities and hoarded items for trading purposes. According to all Islamic Jurists items of commercial

merchandises are liable for Zakat. Land, buildings and other materials purchased for business pursuit are also subject to Zakat based on their market value. Items in Real Estates business like land, plot, building, apartments etc are liable for zakat as commercial commodities. Items of Farm Products such as Pisciculture like fish, fish fries etc. for trading, and Poultry such as ducks, hens, chicks, eggs etc. for trading, Livestock like cows, goats, milk etc. meant for trading, Nurseries products like seeds, plants, grafted plants etc. meant for trading on commercial basis are subject to zakat. Zakat is payable on net revenue receipt of buildings used for rent following the lapse of a year after receipt at the rate of 2.5% Commercial debts such as purchasing commercial items or raw materials on credit or unpaid wages/salaries of staff, utility bills etc shall be deducted from Zakatable assets. Value of goods sold on credit, advance payment made for buying trading goods or raw materials, LC margin & related costs, refundable deposits, rental advance etc. shall be added with Zakatable assets. As for Seller calculation of zakat on stock of commercial commodities are to be accounted according to the purchase(wholesale) price, while the Producer calculate zakat on his stock of produced goods on value of costs of production. In partnership business the partners may pay zakat individually based on his/her calculation (business source plus other sources if any) or pay zakat collectively only from the (partnership) business. Allah has permitted trading and forbidden Riba (interest). (Surah Baqarah-275) Zakat on Debt & on Creditor (Lender) a) Debt is countable for Zakat on the lender in case it is considered recoverable from the borrower. b) If debt is considered irrecoverable or doubtful is not countable for Zakat. Once this debt is recovered from the borrower, Zakat is payable on it for one year only by the lender, no matter how many years it has been owed by the borrower. Zakat on Debtor(Borrower) a) The amount of debt owed by the payer of Zakat is to be excluded from the portion liable to Zakat, provided that he remains in debt before Zakat falls due and finds no other property in fixed assets(not liable to Zakat) that exceeds his basic needs to repay his debt there from. b) In long term, instalment debts, like housing instalments, and other debts that finance fixed assets, which are not counted for Zakat, the payer deducts the amount of annual instalment all at a time, then calculates the total sum of the remaining property and pays Zakat on it if it reaches the Nisab of Zakat.

c) Loans that are invested to finance any commercial business are to be deducted from the total sum liable to Zakat, in case the payer does not have fixed assets exceeding his basic needs. d) Loans invested to finance industrial projects are to be deducted from the total sum of properties counted for Zakat, in case the debtor has no fixed assets exceeding his basic needs to cover these loans. However, in case there are fixed assets to cover these loans, they will not be deducted from the total sum of the properties counted for Zakat.

e) In case the amount of these fixed assets falls short from covering the whole amount of loans, the remaining uncovered portion is to be deducted from the total sum counted for Zakat. In case of deferred investment loans, only the amount of the annual instalment, which falls due, is deducted. Zakat on Livestock Grazing Cattle, camels, sheep, and goats are subject to Zakat. They must be in one's possession for a year. The Nisab of each is as follows: When one has 5 grazing camels for one year, their due is 1 sheep, which is also the due for 5 to 9 camels. The due for 10 to 14 camels is 2 sheep, for 15 to 19 camels is 3 sheep, and for 20 to 24 camels is 4 sheep. The due for 25 to 35 camels is a 2-year-old she-camel, for 36 to 45 is a 3 year-old she-camel, for 46 to 60 is a 4-year-old she-camel, for 61 to 75 is 5-year-old she-camel, for 76 to 90 is 2- 3-year-old she-camels, and for 91 to 120 is 2- 5-years-old she-camels. The Nisab for cattle is 30. For 30 to 40 heads of cattle, a 2-5-year-old male or female weaned calf; for 40 to 60, a 3-year-old weaned calf; for 60, 2.1-year-old calves. When there are more than 60 heads of cattle, the rate is 1 calf for each 30 heads and 1 weaned calf for each 40 heads. When one has 40 sheep or goats, their due is 1 sheep or goat. For 40 to 120 it is the same, for 120 to 200 it is 2 sheep, for 200 to 399 it is 3 sheep, and for 400 to 500 it is 4 sheep. Milk producing cows, goats, cattle, fry producing fishes and egg producing hens, ducks or birds are out of the compulsion of Zakat. But if they themselves are for trading purposes they shall be subject to Zakat. Zakat on Fruits & Crops Zakat on Crops and Fruits is called Ushar in Islamic term. The amount of Zakat payable on crops and fruits varies according to costs spent and effort exerted in irrigation as follows:

If costless, comfortable irrigation the amount of Zakat would be 10%.

If irrigation with the aid of a costly method, such as digging a well and bringing up water automatically, or buying water, the amount of Zakat would be 5% If irrigation includes the two probabilities, the amount of Zakat would be estimated according to the major method of irrigation. But in case of equality, a fixed amount of 7.5% of Zakat would be given. When it is difficult to decide, an amount of 10% of Zakat would be paid.

Unlike other kinds of property, Zakat on crops and fruits does not become due after the lapse of a full year since reaching the Nisab. Rather, the determining factor here is the agricultural season and the crop. Thus, Zakah will be due on each crop produced by the land at the same year. According to Ibn `Abbas and other jurists, all expenditures of ploughing, planting, fertilizing, and harvesting are to be deducted from the total amount counted for Zakat, provided that these expenditures do not exceed the rate of one-third. According to a genuine hadith, "A quantity less than five Wasqs is not counted for Zakat." Now the five Wasqs equal 653 Kilograms of wheat or other grains. The payer of Zakat should pay attention to the various weights of the different kinds of foodstuff. The Nisab of dried food should be calculated after and not before the process of drying is complete. Zakat-ul-Fitr (The Charity of Fast-Breaking) Zakat-ul-fitr must be paid by every Muslim whose wealth meets one's basic needs and has extra wealth equal to 595 grams of silver or 85 grams of Gold (Nisab level) at the time of sunrise on the day of Eid-ul-Fitr. Possession of wealth over nisab level for one year is not required. Home furniture is not counted in case of Zakat but in case of Fitr other than basic furniture all additional furniture and luxury items, additional houses(on rent or empty) shall be counted. A Muslim must pay Zakatul Fitr for himself, & in case father for himself and his dependent children. It is also fathers responsibility to pay Fitr on behalf of all those he supports in his family including wife, adult children, parents and servants. The amount of Zakat Al-Fitr is a Sa` of rice, or other foodstuffs like wheat, dates, corn, flour, powdered milk, cheese or meats, whether canned or not. Zakat-ul-Fitr can be paid either in the kind, or equivalent in cash as per market value. However, as rice is our staple food so Zakatul Fitr should be paid in terms of rice either in kind or its value in cash. Zakatul Fitr should be paid only to a person who is entitled to receive Zakat. Note: The Sa` is a measure that equals approximately 2.5 kgs of rice, taking into account that grains may vary according to their density. The Recipients of Zakat

Allah says As-Sadaqat (here it means Zakat) are only for the Fuqara (poor), and Al-Masakin (the poor) and those employed to administer the (zakat) funds; and for to attract the hearts of those who have been inclined (towards Islam); and to free the captives; and for those in debt; and for the Cause of Allah and for the wayfarer. (thus it is) ordained by Allah, and Allah is most knowledgeable, most wise." (Surah At-Tawbah 9:60) For the poor (Fuqara') who do not have enough to take care of their basic needs. For the needy (Masakin) whose basic needs are met but their income does not take care of other important needs. For those whose sole job is to collect and distribute the Zakat funds. For those who are close to accepting Islam as a religion, and those nonMuslims whose evil can be avoided if they receive money. The converted Muslims can be rehabilitated through Zakat money. For freeing a Muslim person from bondage (whether a slave in the old times, or a prisoner of war in our times) For those who are indebted and cannot pay their debts. For the wayfarer who is stranded in a foreign land and cannot get enough money to go back to his homeland, even though he might be rich otherwise. He should be given enough money to allow him to return to his homeland. It is preferable that Zakat be paid to the poor and the needy among the relatives first. Zakat money can be used to create employments for poor people to attain self-reliant. Who is not eligible to receive Zakat? The rich who have enough to support themselves cannot receive Zakat . Zakat cannot be paid to: Ones dependents whom he is responsible for supporting. These include the wife, the parents, grandparents (up to the eldest living grand grandparent), children, and grandchildren (down to the last born grand grandchild). They should be supported by other than Zakat resources. As for the honor & dignity of the family of the Prophet(SM) the vast majority of scholars hold that non-obligatory sadaqah is permissible for them but not the obligatory one like zakat. Zakat cannot be paid to a non-Muslim, unless this person belongs to category No. 4 of those eligible to receive Zakat. Zakat money shall not be used to construct Mosques, Madrasha, Roads, general Shelter homes etc. However, Shelter homes for the destitute can be built by Zakat money giving full ownership to a destitute. It is to be noted that the Zakat payer is freed from its burden as soon as he grants its ownership to any person of the first four categories of Zakat recipients: the poor, the needy, those employed to administer the Zakat, and those whose hearts are to be reconciled. According to Islamic Shariah Zakat money cannot be used for funeral purposes of a dead person. While Shariah dictates to pay Zakat for those who have Nisab level resources, it

also dictates to give it to appropriate category of people. Zakat shall not deem to have paid if not given to right person.