Ramadhaan – A Date with Dr. Zakir
Episode - 19
Zakaah
[Part – 3]
(Duration: 50 minutes)
Yusuf Chambers: Dear brothers and sisters in Islam and Humanity, Assalamu Alaikum Wa Rahmatullahi Wa Barakatuh, may the peace, the mercy & the blessings of Allah (Subhanahu wa Ta’ala) be on all of you. Welcome to the show ‘Ramadhaan - A Date with Dr. Zakir’, I am your host, Yusuf Chambers, today we are answering your questions on the topic ‘Zakaat’. Assalamu Alaikum, Dr. Zakir.
Dr. Zakir: Wa Alaikum Assalam Wa Rahmatullahi Wa Barakatuh
Yusuf Chambers: Well we’ve got a huge number of questions on this topic probably more on this topic than any other that I have ever seen. So let me grab the trustee clipboard and get stuck in. Dr. Zakir, the first question we have from one of the viewers is.. bare with me because quite a few of these are quite technical … I am sure you know all about them anyway but some people claim that Zakaat on wealth if above Nisaab has to be paid only once in a lifetime. If you’ve paid Zakaat on a particular wealth or gold, you don’t have to pay it again next year. Is there a difference of opinion in this matter?
Dr. Zakir: Alhumdulillah was salaatu was salaam ala rasoolillah wa ala aalihi wa ashaabihi wa ajma’een. Amma Ba’ad
A’uzu billahi minash shaytan nir-rajeem,
Bismillah hirrahman nirraheem,
Rabbish rahli Şadri Wa Yassir Li 'Amri Wa Ahlul `Uqdatan Min Lisani Yafqahu Qawli
As far as regarding the question is there a difference of opinion as far as Zakaat should be paid once in a lifetime or it should be paid every year. In the past 1400 years right from the time of the Sahabas till the Salafus-Saliheeh till date never has there been any scholar, any Fuqaha who has ever said that Zakaat should be paid only once in a lifetime, you read the Qur’an, you read the Hadith, the saying of the Prophet, never will you find any Hadith, any Qur’anic verse, any scholar that has ever said that Zakaat should be paid only once, there in no difference of opinion what so ever.
Lately just a few years back this issue has come to the picture and I was there in Chennai a few years back and this same question was asked to me which originated from Chennai that’s South India where this question was asked and there was a local person who had raised this issue and there is ample of evidence from the Hadith that Zakaat should be paid every year and there is no question of difference of opinion and I don’t know how this controversy came up.
If you read the Hadith of Muhammad (Sallallahu alaihe wa sallam), its mentioned in
Sunan Abu Dawud Vol. no. 2 Book of Zakaat Hadith no. 1568, the beloved Prophet Muhammad (Sallallahu alaihe wa sallam) said that
“If you have 200 Dirhams and if you possess it for a period of 1 year then you have to pay 5 Dirhams”
That means 2½%. 1/40th of it
And there is no Zakaat on gold if you have less than 20 Dinaar.
Now here it says you have to pay Zakaat if you possess it for one full complete year. There is no mention that you have to give once in lifetime. It indicates that if you possess for 2 years you have to pay twice, if you have possess for 3 years you have to pay thrice, it’s understood. If anyone says that it has to be given once in lifetime there should be proof in the Qur’an and the Hadith which states clearly.
And there are various other Hadith which clarifies this issue. If you read the Hadith of
Sunan Abu Dawud Vol. no. 2 Book of Zakaat Hadith no. 1577, the beloved Prophet Muhammad (Sallallahu alaihe wa sallam) said that
“Anyone who has 3 signs has sane belief, The one who worships only Allah (Subhanahu wa Ta’ala), who says there is no God worthy of worship except Allah (Subhanahu wa Ta’ala) and one who pays Zakaat on his property agreeably every year.”
So here the statement is clearly mentioned every year. That means Zakaat should be paid every year so there is no difference of opinion at all and it’s an authentic Hadith and furthermore there are various references that can be given that can easily disprove this point that it should be given only once in a lifetime. There’s a Hadith mentioned in
Sahih Bukhari Vol. no. 2 in the Book of Zakaat Hadith no. 1402, you know some people argue that Zakaat should not be paid on livestock etc. etc..
This Hadith of Sahih Bukhari Vol. no. 2 in the Book of Zakaat Hadith no. 1402 it says that
“Muhammad (Sallallahu alaihe wa sallam) said that the animals, the livestock, the camels, they will appear on the day of Resurrection in the healthiest form that they have been in the world and will go to the master, to the owner and if he has not paid Zakaat, they will tread them under their feet…..
and the Hadith continues…
that the sheep they will appear in the healthiest form they have been in this world and if their owner has not paid Zakaat, they will buck them with their horn and will trample them beneath their hoof.”
Indicating that Zakaat should be given on the animals.
Further if you read the Hadith of Hazrat Abu Bakr (may Allah be pleased with him), its mentioned in
Sahih Bukhari Vol. no. 2 in the Book of Zakaat Hadith no. 1399 and Hadith no. 1400
“There were some Arabs who did not want to give Zakaat and they revolted. So Hazrat Abu Bakr (may Allah be pleased with him), he said that he will wage a war against these people. Hazrat Umar (may Allah be pleased with him) said that “But the messenger of Allah said that those who believe in Allah (Subhanahu wa Ta’ala) and don’t worship anyone else and those who say ‘la ila ha ill Allah Muhammadur Rasoolullah’ we should not wage a war against them” So Hazrat Abu Bakr (may Allah be pleased with him) said that “anyone who breaks the law, he will wage a war against them and anyone who differentiates between Salaah and Zakaat that both are compulsory, he will wage a war against them and By Allah” he says that “anyone who used to give a she kid or a lamb at the time of the Prophet and now is reluctant to give or does not give that Zakaat which he did at the time of the Prophet,” he will wage a war against them.”
Indicating that though Zakaat was given last year this year too it had to be given and if they did not give Hazrat Abu Bakr (may Allah be pleased with him), he would wage a war against them.
And Hazrat Umar (may Allah be pleased with him) says that Allah (Subhanahu wa Ta’ala) had opened the heart of Hazrat Abu Bakr and what he said was right.
Indicating that Zakaat has to be given every year.
Furthermore there are various Hadith how Zakaat used to be collected and there is a Hadith, it’s mentioned in
Sahih Bukhari Vol. no. 2 in the Book of Zakaat Hadith no. 1454 where a person says that
“He was appointed by Hazrat Abu Bakr (may Allah be pleased with him) to collect Zakaat and he said that the Messenger of Allah (Subhanahu wa Ta’ala) said how Zakaat should be collected.
And he goes on saying that if it’s a camel if the number is 5 then you have to give one sheep as Zakaat and the number keeps on increasing and the Zakaat keeps on increasing. If its 40 sheep, if anyone has a flock of 40 sheep, he should give one sheep as Zakaat. Anywhere between the number of 40 and 120 the Zakaat is one sheep. If the number of sheep between 120 and 200, 2 sheeps have to be given for Zakaat. If it’s between 200 and 300, 3 sheep have to be given and for every 100 extra one sheep has to be given. Now when the collector of Zakaat went to collect the Zakaat, they used to count the livestock, they used to count the head of the cattle. They never looked for how many new cattle have you got, how many new were born, they counted all the cattle available there.”
That means they even took Zakaat on the cattle that were paid earlier. They didn’t say okay this was already last year you gave so I will not count that please give me the number that you have purchased lately or the new kids that have been born or they used to look out for any goat or any sheep which is one year old, that wasn’t the case. So this clearly proves that Zakaat has to be given every year and it should be given as long as you possess the wealth for a period of one year and if the Nisaab is above the level then you should pay every year. And this idea that it should be given once in a lifetime is a new idea which was never heard before, it just came few years back, it’s unheard of in the past 1400 years. So there is no difference of opinion whatsoever. Whichever group of Fuqaha what ever they are, all of them agree that Zakaat should be paid every year.
Yusuf Chambers: That clears that up! Alhamdulillah. Question 2, is it essential to inform a person that he is being given from Zakaat?
Dr. Zakir: It’s not compulsory that you should inform the person whom you are giving Zakaat that this is from Zakaat money. As long as you are sure that the person who you are giving to comes under one of the 8 categories in the Qur’an, Fuqara, Masakeen, which we discussed last time, if he falls under one of the categories its not compulsory that you have to mention it’s from Zakaat.
If there is a doubt that he may not fall in the category then making inquiry is a must but otherwise in a general case it’s not compulsory you have to mention that this money is from Zakaat.
Yusuf Chambers: Question no. 3 how should Zakaat be paid on land, is it sufficient to pay Zakaat on it once for a number of years when it is sold?
Dr. Zakir: If any land is purchased for the purpose of selling, for doing business then Zakaat should be paid 2.5% of the value of the land every year. So once you possess the land and 1 year passes then you have to pay 2.5% of the current value so whichever date you have chosen to calculate the Zakaat, it should not be on the price at which you purchased, the price may go up of land, the price may go down so whatever is the present value of the land that you possess, the moment one year is completed after you have acquired it, you have to pay Zakaat 2.5% on it.
And suppose you have a land for several years and you have to pay every year from whatever other wealth you have but if you don’t have any other wealth and its the only land that you have, and you are unable to pay the Zakaat meaning every year is the best but if you are unable to pay, if you don’t possess any other wealth that time as a last resort which is not recommended but as a lost resort if you don’t have any money then you can delay the paying of Zakaat till the time you sell it. And when you sell it if you possess the land for 5 years and you haven’t paid Zakaat so when you sell it you have to pay 5 x 2.5 but you have to note down the value of the land every year. So first year the value may be ‘X’ second year it may be ‘Y’ third may be ‘Z’ so note down the value every year and you have to give 2.5% of that value that year and you have to add up 2.5% each year, add up the 5 years and then that amount you have to give after you sell the land. But the best is to give it as soon as possible.
Yusuf Chambers: Thank you Dr. Zakir. The next question, Question no. 4, some people invest in real estate because they don’t want to invest in banks but they claim that the Zakaat on such wealth has to be paid only on its rent and not on its original value. What is your observation on this issue?
Dr. Zakir: As far as the view of the majority of the scholars is concerned, what they say that if the land has been purchased for selling so that you make a profit then all the scholars unanimously agree that Zakaat should be given on it as we discussed in the last answer.
That the moment one year is completed the land that you purchased Zakaat has to be paid on it. But if you have land and if you give it on rent, means if you buy a house and give it on rent, majority of the scholars say that Zakaat is not applicable on the value of the house. Zakaat is only applicable on the rent you receive, the moment you receive the rent and if it stays with you for a period of 1 year and if it’s above the Nisaab level then you have to pay Zakaat on the rent not on the value of the house, the flat or the land.
But now a days most of the people that purchase land for investment, they give it on rent so here we had a dilemma that people who purchase land mainly the purpose is investment but if they think that they’ll buy the land they’ll sell after 4-5 years when the price rises so but natural they don’t want to keep it vacant so they keep it on rent to a person who requires to stay in that flat.
Now what will happen, should we pay Zakaat or not? So here there is a difference of opinion, here scholars differ. Some scholars say that fine pay only Zakaat on the rent, if you possess for more than one year if it’s above the Nisaab level and when you sell it on that day only you pay the 2½% on the total value of the land. But there are some scholars who are very strict and who disagree with this view and they say that if you buy a land even if you give it on rent, the cost of the land the market value of that land of that flat should be paid every Hijri year. Scholars like Ibn Aqeel, they say this, Ibn ul Arbi, Ibn Aqeel who is a Hambali, Ibn ul Arbi who is a Malaki, Sahikh Abu Zohra who is a Hanafi, Abdul Rahman Al Hassan, Shaikh Abdul Waaf Khalaf who is presently very great scholar, Shaikh Yusuf Al Qardawi and scholars of the same group, they say that if a person buys and has many flats on rent then he should even pay Zakaat on the cost of that flat or of that land.
But for example if a person is a poor person and doesn’t have any income, doesn’t have any business and he has only 1 house which he is living in and second house which he gives on rent so unanimously people agree that the rent he acquires if his saving is more than the Nisaab level but there are many rich people who are land lords and who possess many houses, many flats which they give on rent, they own large properties and if we agree with the view of the majority of the scholars that Zakaat should be only paid on the rent.
Suppose a person has 100 flats costing hundreds of thousands of dollars and the rent that he gets, he utilizes what he requires for his personal expenses and before 1 year is over after he gets the rent he buys another few flats. So and if he doesn’t have any gold jewelry that means he will not pay Zakaat at all. After the 100 flats become 110, 120, 140 may be he is the richest man in the city of Bombay or any city, he may own half the property of the city, half the land in the city so if you agree that Zakaat should not be paid he may be a multi-millionaire, may own half the city, he may own ¾th of the city, he takes rent, when he gets the rent before it becomes 1 year, he utilizes what he wants then he buys new land and if Zakaat is not there on land which is given on rent, he will keep on getting richer and richer and richer without paying a single dollar as Zakaat. So therefore I agree more with the minority group of scholars like Ibn ul Arbi, Ibn Aqeel, Shaikh Abu Zohra, Shaikh Yusuf Qardawi and the likes of these scholars who say that if a person possesses large amount of land and many houses giving on rent then Zakaat should be even paid on the cost price of the land of the flat. Whatever is the present value of that land or of that house, he has to pay 2.5% Every Hijri year and I agree more with these type of scholars.
And anyway even if it’s not required and if a person pays extra Allah won’t question you. surely you will get Sawab for that even if you give as Sadaqa, you will get Sawab so I always agree when in doubt leave it out and go on the side which will give you more Sawab because minimum is 2½% Zakaat, if you pay more, Allah will yet be happy.
Yusuf Chambers: Sounds reasonable to me. Question 5, there are many rich Muslims who build huge houses more than they require, there is no Zakaat on a house in which a person lives if his house was smaller, the money saved could be liable for Zakaat but because they build huge houses, they get exempted from Zakaat. Kindly comment.
Dr. Zakir: Again in this issue too there is a same difference of opinion. Normal ruling is that what is the basic necessity, the shelter, the house which you require protection from the prying eyes, protection from heat, cold, rain, it is a basic necessity and the house in which you live is not liable for Zakaat. There is no difference of opinion but in such cases as the questioner has asked that he has a mansion, a person who may be having a wife and 3-4 children may require 2 rooms, 3 rooms, 5 rooms, 6 rooms, how many? But if he has a mansion, which may be equivalent t to 10 houses, then should he pay Zakaat or not? So again most of the scholars, they say that the house in which you live is not liable for Zakaat but it will fall under the category of Israaf, as Allah says in the Qur’an in
Surah Israa ch. no. 17 verse no. 26 and 27 that
“Be not a spend thrift, be not extravagant. For verily a person who is a spendthrift is a brother of the devil.”
Allah says in Surah Furqaan ch. no. 25 verse no. 67 that
“These are the believers who are neither miser, niggardly neither they are extravagant, they follow a middle path.”
So extravagance is haraam in Islam. So having such mansions is totally prohibited, people say its haraam, people say its Maqroo whatever it is but yet because they are living in it most of the scholars say Zakaat will need not be paid.
But again the same group of scholars Ibn Aqueel, Ibn ul Arbi, Shakh Abu Zohra, Shaikh Abdul Waaf Khalaf, Shaikh Abdul Rahman, Abdul Rahman Al Hassan, Shaikh Yusuf Al Qardawi these group of scholars they say that if a person has a mansion which is much more than what the basic requirements, multiple times more, then its an excess wealth and I agree with the questioner that he could have bought 10 houses and lived in one so on 9 houses there would have been Zakaat. Since he’s excessively rich these group of scholars say that Zakaat should be paid even on that house.
A person who owns many houses also he should pay Zakaat on this and I agree with that view and even if it’s not liable the person is so rich so even if he gives 2.5%, it will be better for him it will be a protection for him on the day of Judgment. So I am of the view that these people should pay Zakaat on the house.
Yusuf Chambers: Thank you very much Dr. Zakir. Next question from another viewer. Some Muslims are extremely rich and have several huge companies and factories and such like. Should Zakaat be paid on complete assets that the person owns or only on its goods that it’s required?
Dr. Zakir: Again the same difference of opinion. The normal ruling is that you pay Zakaat on the merchandize and goods of trade what you buy and sell but the place where your business is, its free from Zakaat, you may have vehicle which you use for transportation, its free from Zakaat but only on the goods in merchandize you pay Zakaat but this example is again of a very rich Muslim who has many companies, many factories, may be costing millions of dollars, should he pay Zakaat only on the goods or on the full assets?
Again the same group of scholars say that since he is excessively rich and the company is very big and normally what rich people do that they have one company whatever profit they get no one stores it in the house, you won’t keep it in the lock and key, you wont buy gold and keep it, he will buy one more factory, that’s an investment. So a person who has few factories who makes millions of dollars a month, the moment he gets it within a few months he may invests and he opens one more factory, then he earns more, then he opens one more factory so if he has to pay only on the goods, the goods per se, the stock, will be a very small amount but the cost of the factory will run into hundreds and millions of dollars. So I agree again with the same group of scholars who say that if a person owns many factories so Zakaat should be paid on the complete asset of the factory including the land.
Our beloved Prophet Muhammad (Sallallahu alaihe wa sallam) further said, its mentioned in
Sahih Bukhari Vol. no. 7 (Book of Patience) Hadith no. 5672, the Prophet said that
“A person will be rewarded for everything that he spends except what he spends in making buildings.”
You know also making buildings and all these big things and further its mentioned in
Sahih Bukhari Vol. no. 4 (Book of Jizyah) Hadith no. 3185 beloved Prophet Muhammad (Sallallahu alaihe wa sallam) said that
“I am not worried about my Ummah as far as poverty is concerned but I am more worried about my Ummah as far as prosperity is concerned because previously many people were destroyed because of luxury and they used to compete with one another. So I am worried about my Ummah because of luxury and they’ll compete with one another and as the earlier people were destroyed, they too will be destroyed.”
Muhammad (Sallallahu alaihe wa sallam) was worried about these things about luxury, having big-big mansions, having big-big factories and just to get on common terms when the question is asked that when you buy shares, you know, stock market, halaal stock, halaal shares, of a company which is halaal and you ask any scholar that you buy the shares, do you have to pay Zakaat, they’ll say yes. Whatever is the value of the share NAV Net Asset Value, you have to pay Zakaat on it.
So when you buy shares of the company, the share cost is equivalent to the complete asset, it is not only on the goods. So when you buy shares from the stock market of a company and then you are paying the full Zakaat of the share value, if a person owns a company completely that means, he is a 100% shareholder. So there when you buy 1%, 2% of the shares you are paying complete amount on that 1% that includes the land, cost everything. So here why when you own it completely you only pay on the goods? So here agreed it becomes a difference. So in shares as you have to pay on the net asset value, I believe even in the company you have to pay for the complete net asset value and InshaAllah that will increase the wealth of that rich man and will purify his wealth, InshaAllah.
So the best thing is that as Allah says in
Surah Tawbah ch. no. 9 verse no. 34 and 35 that
“Hoard not gold and silver, there are people who hoard gold and silver and spend it not in the way of Allah (Subhanahu wa Ta’ala), and give not Zakaat on it, announce to them a grievous penalty where heat will be produced from the fire of hell, from the wealth they possess and they will be branded with it on their head, on their flanks, on their back and it will be told to them that taste ye the wealth which you hoarded.”
So therefore I am of the opinion that Zakaat should be given even if it’s a big mansion even though you are living in it give Zakaat, if you have multiple houses, give Zakaat. If you own land even may be on rent, give Zakaat on it. If you own factories give Zakaat. As a general rule if the person is really very rich, really very rich, he should give Zakaat on everything and I know that the basic necessities you should not give Zakaat but its safe for their Aakhira that he gives Zakaat on the possession, on the factory, everything so that it is safe and he’s free from the fire of hell.
Yusuf Chambers: Thank you Dr. Zakir for that. A sister does not have any wealth apart from jewelry, should she sell some of it in order to pay the Zakaat on it?
Dr. Zakir: As far as the jewelry she has, and if it’s gold and if it is above the Nisaab level, 85 grams of gold or above it, then Zakaat is compulsory, if it’s silver, it should be 595 grams of silver or above it. If it’s more than the Nisaab level, Zakaat is compulsory on it. Zakaat can be paid even from the other wealth that she has or from the jewelry itself. If she has other wealth and she pays Zakaat and every year she has to pay 2½% of the value of the gold or silver, if she doesn’t have any of her relative also can pay on her behalf. Whether it be father, mother, brother, no problem, he can pay. But if she doesn’t have any wealth and no relatives then she will have to sell part of her jewelry, she will have to sell 2.5% of that jewelry and give Zakaat its compulsory should be given every year.
Yusuf Chambers: Ok. Thank you. the next question is if every year 2.5% Zakaat on savings or jewelry is given, is paid, after 40 years there would be nothing remaining, is this a trick question?
Dr. Zakir: Ha..ha..ha… many people think that if you keep on giving 2½% Zakaat so 2½ multiplied by 40 becomes 100% so to give 2½% every year then at the end of 40 years you will be left with nothing. Actually their Maths is a bit weak because Zakaat is given on what they have for one full year. So if for example someone has may be 30 grams of gold so he has to pay Zakaat for the 1st year 2½% i.e. 2½ grams of gold. Next year he has to pay 2½% on 97½ grams not on 100 grams so which will be less than 2½ grams of gold. So it will take much more than 20 years and the full asset can never be nil, it can never be, even if hundreds and hundreds and hundreds of years pass, it will never be nil, it will keep on diminishing, something will be left but again the moment it reaches a Nisaab level just after a few years and the lady gives 2½% may be about for a few years may be 5 years, 10 years, 15 years, within a few years from 5 to 10 years, it will reach a Nisaab level, the moment it goes below 85 grams of gold, which will take somewhere close to about 10 years odd or little bit more, moment it reaches below the Nisaab level, then you stop paying Zakaat.
Or if a person earns a thousand grams of gold, he keeps on giving but the moment he reaches Nisaab, they stop giving gold so never can it be zero. Even practically they keep on giving even below Nisaab it will not reach zero. But the moment it reaches Nisaab according to Islamic Shariah, they don’t have to give Zakaat so that’s the reason Alhamdulillah this tax is levied every lunar year.
Yusuf Chambers: Jazak Allah khair for your answer. Next question, are diamonds exempted from Zakaat?
Dr. Zakir: As far as diamonds and other precious stones are concerned ruby, pearl, safire it’s a unanimous agreement amongst all the scholars that Zakaat need not be given on these precious stones including diamonds but if its used for trade, for buying and selling then but natural, it should be paid once every year whatever stock you have, if you are using it for selling but if its used as an ornament, you know, the precious stone, Zakaat is not liable but if there is a mixture of jewelry gold and diamond together then if that amount of gold reaches the Nisaab level then Zakaat is due on that but on the diamond on the other precious stones it’s not liable.
But again nowadays, many people they purchase diamonds as an investment you know because even the value of diamonds increases so if its bought with the Niya of investment, there are certain Fuqahas who say that if its for investment that the Niyat is there that their intention is for that and to gain profit then Zakaat should be paid on diamond, if its only for normal use, for personal use and not for investment then Zakaat is not liable on diamond and other precious stones
Yusuf Chambers: JazakAllah Khair! Thank you Dr. Zakir for that. The next question we have from yet another viewer how should Zakaat be paid on commercial goods? Should it be based on the price for which it was bought or the price for which they are to be sold?
Dr. Zakir: As far as a person who buys any article for his use then but natural whatever he buys, whatever the cost is, we have to take out the depreciation and pay Zakaat on that amount depending on what it is. If its land it may appreciate, it may go down, if it’s a machinery then depreciation but this question is mainly for goods for trade that a person who buys some goods for selling so should he pay at the price at which he bought it or at the price at which he is going to sell.
Here again the scholars differ. According to Shaikh Saleh Al Munajjid, he says that if you buy certain goods for selling, if you are a wholesaler then take Zakaat on the price of wholesale, that your’e going to sell, If you are a retailer then you take out Zakaat on the price that which you are going to sell on retail and if you are doing both then take a rough estimate and then take out Zakaat but some of the scholars, they say that in retail the profit margin is quite a lot depending upon the good you are dealing with. If you are dealing with may be buying and selling books, the profit margin of books is 40%, 50%, 60% also. So imagine if someone has large shop of books or a chain of bookstores and if he purchases worth may be 100,000 dollars worth of books and he sells the selling price may be more than 200,000 dollars so for him to pay Zakaat on the selling price would be too much so I agree more with those scholars who say that whatever is the cost, once you buy it since its with you, you haven’t made the profit yet so the cost price for you for that book is the cost at which you brought it, at the discounted cost. So if you give 50% discount so whatever you bought it that you pay Zakaat when you sell it, then you get 50% profit, or may be many a times the books aren’t sold so you have to keep a sale and then sell the book at 40% discount sometimes you have to sell it at a loss, you purchase at 50% discount, you sell at 60% discount and especially you take out then books which are there lying with you for may be 5 years or 6 years or 8 years so imagine you pay 8 years Zakaat on the higher side and then you sell it at a discounted rate so I agree more with those group of scholars who say that you pay a Zakaat on what you actually paid and then if the cost price increases…
For example you buy good for 100 dollars or 100 rupees then you give 50% discount so you are buying capacity is 50 rupees or 50 dollars. Suppose the price the MRP the maximum retail price increases to 110 Rupees or 110 dollars then you calculate 50% discount, 55 rupees. That time you can increase the price but not at the selling price. You don’t know whether you are going to sell at the full price or a discounted price or whatever it is therefore I agree more with what is the cost or discount you get added to the present cost and that’s how you have to make out what is the total value of your goods after possessing it for one year and then pay Zakaat, 2½%, on it.
Yusuf Chambers: Okay great, thank you. Next question is there any Zakaat on rental cars and vehicles that companies own for moving projuce?
Dr. Zakir: As far as possessing vehicles given on rent the same view is used as houses on rent, the same thing. So majority of the scholars say that if its vehicle given on rent, no Zakaat is there on that vehicle, fine if it’s a taxi driver who is a poor person who has one taxi and his earnings is just a few 100 dollars a month or a few thousand rupees a month but natural you pay Zakaat on the cost of the vehicle, on the taxi, it will be too much for him so I agree that there should be no Zakaat on the cost of the vehicle but on the other hand if you have a person who owns a fleet of cars may be a thousand cars, you know we have Hertz and these big-big companies who own thousands of cars, now for them that itself becomes an asset, you know, they give on rent and they keep on buying every few months hundreds and thousands of cars so I believe that if it’s a fleet of cars and if it is given on rent then the cost price, the depreciated cost price, don’t take the cost at which you have bought the car, take the depreciated cost every year keep on taking out depreciation but give it at that value, you give 2½% Zakaat, that will be preferable. So I agree more with those same group of scholars Shaikh Qardawi, Ibn Aqueel, Ibn ul Arbi, Shaikh Abu Zohra, Abdur Rahman Al Hassan and all these group of scholars.
Yusuf Chambers: Next question another viewer, there are many Muslims who haven’t paid Zakaat for years now if they choose to repent, do they have to pay Zakaat for previous years if yes then how do they calculate the Zakaat since they haven’t got a ready record for the number of years and then amount etc and the details?
Dr. Zakir: As we discussed a few days earlier Ramadhaan – the month of Repentance, there are some criteria for repentance. If you have done something wrong, agree it is wrong, stop it immediately, don’t do it in future and if you can undo it. So if you know not paying Zakaat is wrong, agree it is wrong not paying Zakaat, stop it that means stop not paying Zakaat, that means start paying Zakaat, see to it that you don’t stop paying Zakaat, keep on continue paying Zakaat and you can undo it. Undo it means you have to pay Zakaat because that belongs to the poor people, the 8 categories of people, so you are depriving them of their wealth which is rightfully theirs. So if you have not paid Zakaat for a few years and now you have realized that you have to pay Zakaat so you have to roughly calculate what was the amount of Zakaat they had to pay each year.
So if you haven’t paid for 5 years, roughly calculate, if you can exactly, if you know what was your saving and what was your asset then calculate exactly. If you cannot then whatever you can do best of your ability so that your conscious is clear, go back whether it’s 5 years, 10 years, 15 years give 2½% of the each year’s asset you had, the saving you had and give it as soon as possible, the sooner you do it, the better it is. That is the best way of repenting and InshaAllah, Allah will increase your wealth.
Yusuf Chambers: JazakAllah Khair. Dr. Zakir, next question. Another viewer wants to know will the Zakaat of a person be accepted if he gives it to an ineligible person by mistake?
Dr. Zakir: If a person gives Zakaat to an ineligible person by mistake surely Allah (Subhanahu wa Ta’ala) as Allah says in the Qur’an
“He does not catch the servants of Allah if they err and if they forget.”
So by mistake then InshaAllah it may be forgiven. And there is a Hadith mentioned in
Sahih Bukhari Vol. no. 2 in the Book of Zakaat Hadith no. 1421 that
“Once a person went out to give alms and he unknowingly gave the alms to a thief. Next day the people started speaking that he gave alms to a thief so he said “O Praise be to Allah, I will give charity again” so he again goes out and unknowingly he gives charity to an adulteress. So next day again people start talking “O he gave charity to an adulteress” so he says “O Praise be to Allah, I will give charity again” so unknowingly, the third time when he goes out to give charity, he gives it to a rich person, again people start talking “O he has given charity to a rich person” so he says “O Praise be to Allah” and he is asking Allah (Subhanahu wa Ta’ala) that he made a mistake so there is a person who comes and tells him that InshaAllah your charity will be accepted. You may never know you gave charity to a thief, to an adulteress and to a rich person, you may never know your charity may prevent the thief from robbing and he may come on the straight path. You may never know the charity you have given to an adulteress, she may stop doing adultery she may stop doing sexual intercourse and may cone on a straight path. You may never know the charity you gave to a rich person may kindle in the heart of a rich person that he will spend his wealth in the way of Allah (Subhanahu wa Ta’ala).”
So again based on this Hadith that the Niya was good so if a person makes a mistake and he gives Zakaat to a person who is not eligible as long as he tried his best to find out the truth he makes a mistake Allah InshaAllah will accept his Zakaat. But if he is in doubt yhe should make an enquiry but by mistake if he gives then InshaAllah, Allah will not hold him responsible and his Zakaat will be accepted.
Yusuf Chambers: Excellent, thank you! Next question what is the ruling on a person who asks for Zakaat that does not fall into the category of its recipients?
Dr. Zakir: If a person who is not eligible to receive Zakaat and he asks Zakaat the person who knows about it he should not give him Zakaat, just because he is asking if you know very well that he doesn’t fall in the category if he tells a lie and you don’t know anything and you give by mistake, Allah will accept your Zakaat. But if you know not only should you not give but you should also warn him that it’s a great sin as our beloved Prophet Muhammad (Sallallahu alaihe wa sallam), its mentioned in
Sahih Bukhari Vol. no. 2 in the Book of Zakaat Hadith no. 1474, the beloved Prophet said that
“Anyone who keeps on asking from people to increase his wealth on the Day of Resurrection his face will be without any flesh.”
Our beloved Prophet Muhammad (Sallallahu alaihe wa sallam) also repeated in another Hadith, it’s a Hadith of
Sahih Muslim Vol. no. 2 in the Book of Zakaat Hadith no. 2266 where the beloved Prophet said
“Anyone who asks from people in order to increase his own wealth actually asks live coals of fire for himself and it will not benefit him in the Aakhira.”
There are several such Hadith, there is one more Hadith which is mentioned in
Sahih Muslim Vol. no. 2 in the Book of Zakaat Hadith no. 2255 where
“A person comes and he begs from the Messenger of Allah and the Messenger of Allah gives him some charity. Again he comes and he begs again the Prophet Muhammad (Sallallahu alaihe wa sallam) gives him charity. Again for the third time he begs, again the Prophet gives him charity and tells him that “a person who begs, if he does with a clean heart it will benefit him but if he does it veraciously, it is like a green ripe fruit.” The property is green and sweet, if a person begs with a correct intention, it will be good for him but if a person begs with a veracious mind, it will be a loss for him. And it is like a person who eats and he is never satisfied and the Prophet said the upper hand is better than the lower hand.”
And the messenger of Allah also repeats another hadith in
Sunan Abu Dawud Vol. no. 2 Book of Zakaat Hadith no. 1629 that
“During the farewell pilgrimage when the Prophet was distributing Zakaat, two young and robust men, they came and they asked that please give us Sadaqa, please give us Zakaat. The Prophet looked at them and he said that “there is no Zakaat for a rich man and a person who is healthy.”
That means they should work. They have got good healthy body, Allah has given them that means they should work unless what they work and they are not able to earn enough salary for their basic needs then it’s a different question. So based on this Hadith we realize that a person who is not liable for Zakaat should not have Zakaat and a person knows about it he should stop him from asking Zakaat.
Yusuf Chambers: Okay. Thank you Dr. Zakir and the last question today Dr. Zakir on the topic Zakaah is what is the different between Sadaqa and Zakaat?
Dr. Zakir: By definition Zakaat means to purify, to increase, it means goodness, it means blessings and Sadaqa comes from the root word ‘Sidq’ which means sincerity so it is sincerity in faith of Allah (Subhanahu wa Ta’ala).
Zakaat by definition according to Islamic Shariah it is an obligatory charity which every Muslim who owns more than the Nisaab level or surplus wealth, if he has it with him for a years period, he has to give 2.5% on it every year.
As far a Sadaqa in concerned, it is an optional charity. Zakaat is also worship of Allah, obeying the command of Allah (Subhanahu wa Ta’ala).
Sadaqa is also worship of Allah, it’s obeying Allah but it is voluntary.
The major differences between Zakaat and Sadaqa is that there are certain conditions required for Zakaat
No. 1 it is given on certain goods for example gold, silver, ornaments containing gold or silver, merchandize, it can be business activities, farm produce, cattle and all the categories.
Whereas Sadaqa you don’t have to possess any wealth that you have to give Sadaqa, it can be just given.. Sadqa.
Point no. 2 In Zakaat these properties and surplus wealth should be with you for one full year then you have to give Zakaat.
Sadaqa, there is no necessity of any particular wealth being with you for such and such a period, you can just give it without any time period.
Point no. 3 You should have a Nisaab level of these wealth. Only when it reaches Nisaab level for example if you have gold weighing 85 grams then you have to give Zakaat or silver 595 grams, if it is less than that no Zakaat is there.
Sadaqa irrespective whether the property you have less, more irrespective, you can give voluntary.
The other difference is Zakaat can only be given to the 8 categories who are permitted to receive Zakaat in the Qur’an
Surah Tawbah ch. no. 9 verse no. 60 the poor people, the needy etc. which we discussed earlier.
Sadaqa, it can be given to anyone, it can be given to the categories of Zakkaat, it can be given to the categories outside Zakaat, there is no limitation, no binding whatsoever.
Point no. 5 If a person who is liable to pay Zakaat and does not pay Zakaat and he dies then his children, his heir have to see to it that Zakaat is paid off, if its from his property before distributing the wealth, it should be paid off, that’s a liability which is not in the case of Sadaqa. Person who intends doing Sadaqa and he dies, his heirs need not fulfill that, it is his own intention, if they want they can, its optional.
No. 6 If you don’t give Zakaat which is a pillar of Islam...obligation, its compulsory; you will be punished for that.
As Allah says in Surah Tawbah ch. 9 verse no. 34 and 35
“You will be branded with the fire from hell with that gold in which you haven’t paid Zakaat”, which is not the case in Sadqa.
Point no. 7 Zakaat cannot be given to the descendants of Muhammad (Sallallahu alaihe wa sallam) which is not the case with Sadaqa, you can give it to the Prophet also and to his family.
Point no. 8 You cannot give Zakaat to the dependants. The father cant give to the son, a person cant give to his father whereas Sadaqa a father can give to his son, son can give to the father irrespective whether he is dependant or not.
Point no. 9 Zakaat in most categories cannot be given to the rich and the healthy.
And Sadaqa can be given to the rich and the healthy.
Zakaat cannot be given to the non-Muslims whereas Sadqa can be given to non-Muslims.
So these are the major 13 differences between Zakaat and Sadaqa
Yusuf Chambers: Well, Thank you very much Dr. Zakir that’s all for today and that really does help everybody to know exactly what Zakaat is, who can accept it and of course what it is and how its calculated etc. according to the authentic traditions of the Prophet Muhammad (Sallallahu alaihe wa sallam) and of course Allah (Subhanahu wa Ta’ala)’s divine guidance, the holy Qur’an sent to the whole of mankind.
JazakAllah Khair, Dr. Zakir.
Dr. Zakir: Waiyya Kum
Yusuf Chambers: Well brothers and sisters yet again we come to the end of another show and today of course we’ve covered what we believe to be most important questions that you have posed via email and other methods by post etc. and we hope and we pray to Allah (Subhanahu wa Ta’ala) that you have benefited enormously from watching the show and listening to the answers of Dr. Zakir Naik today on our programme ‘Ramadhaan – A Date with Dr. Zakir’ I have been your host, Yusuf Chambers, and tomorrow when we will endeavor to discuss a very-very important issue and that is ‘Lailatul Qadr’ so do join us again tomorrow at the same time.
Assalamualaikum Wa Rahmatullahi Wa Barakatuh!