Jun 6, 2017 - Property - The house you live in is not Zakatable. Investment properties for the primary purpose ... Busin
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ZAKAT ANNIVERSARY DATE
2 WEALTH TO PAY ZAKAT ON
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CALCULATION
Have you had wealth (money, jewellery, assets, etc.) exceeding $450* at any time in your life and it has been at least 12 months (1 lunar year) since you exceeded this amount? If yes, you have been above the Nisab and your wealth is Zakatable. *Nisab value based on Silver as at 6 June 2017
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PAYMENT
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Your Zakat anniversary date is one lunar year from the date your wealth exceeded the Nisab value. If you cannot remember the date when your wealth surpassed the Nisab value, then pick an arbitrary Zakat anniversary date. This will be the date on which you calculate & pay your Zakat yearly. Recommend you pick a date in Ramadan e.g. 25 Ramadan to double your rewards of paying Zakat & doing it in this blessed month (it also makes it easy to remember!) As a simple guide - Cash / gold / silver - Any cash, gold, silver (incl. jewellery) you have is Zakatable. - Property - The house you live in is not Zakatable. Investment properties for the primary purpose of rental income, only savings from the rental income forms part of the Zakatable wealth. Investment property for the primary purposes of selling property i.e. capital growth - entire selling price of property may be Zakatable. Talk to us for more details. - Business Stock - All stock in hand is Zakatable. - Superannuation - The compulsory component of superannuation is not Zakatable. Any voluntary contribution in addition to the compulsory component is Zakatable. MISSED
DISTRIBUTION OF ZAKAT
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NISAB
NISAB
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ZAKAT ANNIVERSARY DATE
INTEREST MONEY
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ZAKAT 2M0IS1SE6D
8 WIFE, HUSBAND AND CHILDREN
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Zakat made simple. So you want to start paying your Zakat "properly" but don't know where to start?
WEALTH TO PAY ZAKAT ON
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FROM RECEIVER TO PAYER
PAYMENT
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Giving Zakat to family members if they are in need is recommended & will earn more reward by not only paying Zakat but also helping strengthen family ties. Keep in mind, you cannot give Zakat to those in your family you have a responsibility to look after (e.g. Children, parents, wife, etc.)
WIFE, HUSBAND AND CHILDREN
A wife should pay Zakat on her wealth e.g. Jewellery, Cash etc. A husband is not obliged to pay Zakat on her behalf. However, he can do so from his good will and this will earn him more reward. A husband cannot give his Zakat to his wife however (even if she is in need) since he is responsible for her. He should look after her from his own wealth.
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There are 8 categories as Allah has defined in the Qur'an to be recipients of Zakat and we cannot deviate from that. These are Poor, Needy, People in Debt, Slaves, To bring peoples hearts closer to Islam, Zakat Adminstrators, Travellers and those struggling in the way of Allah. Only a trustable Zakat administrator should be entrusted with the responsibility of your Zakat. It is recommended that you pay your Zakat to a reputed local Zakat organisation who can distribute your Zakat locally and as per any wishes you may have. A holistic approach needs to be adopted for Zakat collection & distribution with the objective of shifting the local needy from being Zakat receivers to Zakat payers.
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DISTRIBUTION OF ZAKAT FAMILY
Most scholars are of the opinion that Zakat is to be paid by the rich (those above Nisab) to the poor of their local community. Hence if you live in Australia, it is recommended you pay your Zakat locally in Australia.
CALCULATION
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Calculation is simple. You simply add up all your wealth (as identified in Step 3) on your Zakat anniversary date, and pay 2.5% of the total value of your wealth as Zakat.
Any wealth / investments made by parents on behalf of their children or any such wealth owned by the children themselves, irrespective of their age, should be considered for Zakat calculation. If the parents have authority over the wealth, then this is their responsibility. If the children are old enough to have authority, then it will be their responsibility.
MISSED ZAKAT
You do your best to estimate your wealth on your Zakat anniversary date for each of the missed years. If you do not have any information, then scholars have said you can take the average of your estimated highest and lowest wealth during this period and 2.5% of this wealth would be your Zakat for each of your missed years.
INTEREST MONEY
Lastly interest money should not be calculated as part of your wealth. Rather this should be given away as general charity "tainted wealth" with no expectation of any reward. It is recommended you find an organisation that accepts Tainted Wealth as a specific category of donation and ensure you get rid of all your interest from this year & previous years.
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Note: This serves as a starting point so you know what's involved. Next step we recommend is to download our free Zakat guides at http://guide.nzf.org.au so you can understand more of the details or simply get in touch with us, your local Zakat experts! 1300 663 729 |
[email protected] | nzf.org.au
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