ZAKH

Meaning,Importance,Payers &Recipients

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WhatisZakh?
Linguistically:purification(tazkiyyah),increase, blessing,praise. Islamiclaw:transfer(tamlk)ofownershipofaportion ofwealthspecifiedbyAllahtoaneligibleMuslimina mannerthatexcludesallworldlybenefittothepayer forthepleasureofAllah.

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ImportanceofZakh

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HowmanytimesdoesZakh appearalongside Salh intheQuran?

32
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Allahhasmadeita sourceofpurification foryourwealth. [Ibn Mjah and Bayhaq]

Takeoutoftheirwealtha sadaqah (obligatoryalms) bywhichyoumaycleanse andpurifythem. 9:103

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TheMessengerofAllah(peacebeuponhim)said: WhomsoeverAllahhasbestowedwithwealthandhedoesnotpayits Zakh,thatwealthwillbemadetoappearbeforehimontheDayof Judgementintheformofabaldserpentwithtwohorns/spots.Hisneck willbeencircledtherewithontheDayofResurrection.Thenit[serpent] willholdhim[fromthehand]withitstwojawbonesandsay:Iamyour wealth,Iamyourhoardedtreasure. [Bukhr &Muslim]

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Conditions
Muslim Adult(reached puberty) Sane ShiblNisb ownerof wealthequalor aboveNisb level

Conditionsto befulfilled forZakhto bepayable

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Nisb

20 mithql gold 87.48 grams Only possess gold? Use Gold Nisb level January 2012: Nisb level = 3020.77

200 dirhams silver 612.36 grams Possess mixed assets? Use Silver Nisb level January 2012 : Nisb level = 464.25

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RecipientsofZakh

Poor

Needy

Stateappointed Zakh collectors

Thosewhose heartshaveto bereconciled

Emancipation ofslaves

Debtors

Inthewayof Allah

Wayfarer

9:60 Empowering Muslims to benefit society through faith-based campaigns

Zakh Payers&Recipients
Poor =netassets (excludingbasicnecessitiessuchashouse, food,clothing,furnitureetc)arebelow theNisb threshold. [alDurr alMukhtr]

Poorrelativesshouldbegivenpreferencewhendistributing Zakh.
Charitygiventoarelativeistwothings:charityandupholdingthetiesof kinship.(Nas ,Sahh)

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Thosewho mustpay Zakh

Thosewho neitherpay norreceive Zakatable assetsbelow Nisb,but totalassets aboveNisb

Zakatable assetsabove Nisb

Thosewho receive Zakh

Totalassets arelessthan Nisb

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ThosebarredfromreceivingZakh

Lineal Ascendants
Parents and grandparents

Lineal Descendants
Children and grandchildren

Spouses

Certain Hashimites
Descendants ofAbbs, Hrith,Ab lib from Al,Jafar & Aql

Husband and Wife(s)

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Conditions forValidity

Intentionatpaymentoratdivisionoftotal
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ZAKH
Assets,Liabilitiesand Calculation

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OVERVIEW
1. PersonalAssets 2. BusinessAssets 3. Debts 4. WhentopayZakh 5. Casestudy
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PERSONAL ASSETS
AllassetsownedforPERSONALUSEareexempt fromZakh except:

GOLD

CASH

SILVER

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GOLDPLATED?

HARMINCOME?

LIVESTOCK?

Formixedmetalassets, Zakh onlypayable if Gold/Silverforms majority.

Zakh not payable. MUSTbedonated100% tocharity.

Zakh payable. Anyfarmers?

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BUSINESS ASSETS ZAKHPOSITIONDEPENDSONYOUR

INTENTION

CLEARINTENTIONTO

RESELL?
Zakhdueonentire assetvalue alwaysuse SellingPrice/Market Value

HOLDASINVESTMENT?
Zakhnotpayableon MarketValuebut payable onnetincome fromAsset

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RESIDE?
NoZakhpayable. Thisbecomesa personalasset.

NOCLEAR INTENTION?
NoZakhpayableon assetvalue,butincome received subjectto Zakh.

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BUSINESSASSETS
INTENTIONNOT TORESELLIMMEDIATELY?

STOCK&CASH
Zakh payableonstock andcashonlyNOT on goodwilloroncapital equipment/property

PROPERTIES
ZakhisONLY payable onnetrentalincome

SHARES
ZakhNOT onvalueof shares Zakhpayable on cashbalance&stock valuation thisneeds calculating

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PENSIONS
ZakhONLY payableif youcanchoosehowto invest thepensionfund theamountofZakh dependsontheasset beinginvestedin.

CHILDTRUSTFUND
ZakhisNOT payable. Afterchildreceives cashon18th birthday, theyarepersonally responsibleforpaying Zakh.

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DEBTS
DEBTSOTHERSOWEYOU
1.

Pleasereferto www.alqalam.org.uk fordetailedfatwa.

Strongdebt: Loans(includingQard eHasana)anddebtsincurredinconsiderationof commercialgoods. Ruling? CreditorremainsliabletopayZakh evenbeforepossession,but obligationtopayonlymaturesuponreceiptofthevalueof40dirham's ofthedebt.

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LIABILITIES/DEBTS
DEBTSOWEDTOOTHERS

1.Deductiblefrom yourZakatable total iftheyaretobe repaidinfull within thenext12months.

2.Debtsnot repayableatall inthe next12monthsare NOT deductible.

3.Ifdebtsare payableby instalment,then12 monthsdebt is deductible.

Pleaserefertowww.alqalam.org.uk fordetailedfatwa.

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ISLAMICHOMEPURCHASE PLANS
Ijra &Diminishing Mushraka Schemes TheseareNOTconsideredasDEBT thereforenofuturepaymentsatall can bedeductedfromZakatable assets.

Pleaserefertowww.alqalam.org.uk fordetailedfatwa.

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RECAP
ADD PERSONALASSETS(GOLD,SILVER&CASHONLY)

ADD FULLVALUEOFBUSINESSASSETSIFINTENTIONISTORESELLIMMEDIATELY

ADD ZAKATABLEVALUEONLY,IF INTENTIONISNOTTORESELLIMMEDIATELY (properties,shares,pensions,businessstockandcash)

ADD [qualifying]DEBTSowedtoyoubyothers

SUBTRACT [qualifying]debtsyouowetoothers

PAY2.5%ZAKH ontotalifitequalsNISB

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WHENTOPAY?
Cantremember whenyou becameSahib unNisb?

Zakhpaidwhenyou areatorabove Nib levelonyour Zakhanniversary.

Estimate! Cantestimate? Sticktoalunar dateeachyear!

MissedZakhshould becalculatedtobest ofonesabilityand paid.

Doesithavetobein Ramadhn?

DistributeASAP. Latest1yearafter calculationdate

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CaseStudy
AyeshaonherZakhAnniversarydate,10thofRamadhn,takes accountofherfinancesasfollows:
Personalcar/clothing/furniture:15,000 PersonalGoldjewellery2,000 Ownshalfofanotherproperty rentedout.Valueofproperty180k. Ayeshahasanopticiansbusinesswhichhasstockofglassesandcontact lensesworth20k. Cashinherbusinessaccounttotals15k,inherpersonalaccount10k OwnssomesharesinBPforresaleonly=2,000 Shehaslent 3,000toherfriend ShehasaPersonalPension,chosentoinvestinSharah compliantcash account,MV=30k Sheowes5,000tosuppliersofglasses 3yearsworthofInstalmentsareoutstandingonfurniturepurchased,total debtoutstanding=6,000

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C A S E S T U D Y

PersonalCar/Clothing/Furniture Gold MainResidence InvestmentProperty Stockinbusiness Cash Shares MoneyowedtoAyesha Pension Moneyowedtosupplier Debtonfurniture

Nonzakahtable zakahtable Nonzakahtable Notzakahtable zakahtable zakahtable Fullyzakahtable zakahtable zakahtable DeductibleforZakh 12MonthsDeductibleforZakh

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C A S E S T U D Y

Item Gold Stockinbusiness Cash SharesinBP Moneyowedbyfriend Pension Moneyowedtosupplier Moneyowedforfurniture NetamountforZakh Zakhat2.5%

Value 2,000 20,000 25,000 2,000 3,000 30,000 5,000 2,000 75,000 1,875

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SUMMARY
Zakhisthe3rd PillarofIslamandcompulsoryifyouareShiblNisb Zakhisapurificationofoneswealthandarightofthepoor Thosewhosetotalwealth,excludingbasicnecessitiesanddebtsisbelow Nisb levelcanreceiveZakh. ZakhshouldbecalculatedpromptlyontheannualZakhdateandthen paidassoonaspossible,atthelatestwithinoneyear. Zakah ispayableonmanybusinessassetsanddebtscanbedeductiblein somesituations FailuretopayZakhatallortounderpayZakhisamajorsin.

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OnlineResource

www.1stethical.com
OnlineKnowledgeBasereceiving 5,000hitseverymonth

www.alqalam.org.uk
ResourcePortalandFatawas

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