Zakaat is one of the five pillars of Islam and it is an obligatory act.  The meaning of Zakaat is “to purify”.  In essence, Zakaat is purity or to purify.  To purify our own wealth all Muslims are obliged to pay a portion of their wealth. Zakat is an obligation upon any Muslim who has reached puberty, is sane and has had more than the minimum required amount of wealth (Nisaab) for one year. 

Assets you must include in your Zakat calculation are the following, cash (on hand and in bank accounts) gold, silver, pensions, shares, business goods, cattle and crops. However, you do not need to calculate personal items for example, your home, furniture, cars, vehicles, clothing, food, that are not used for the purpose of business.

What is Nisaab?

The Nisaab was set by Prophet Muhammad (peace be upon him) at a rate equivalent to: 87.48 grams of gold and 612.36 grams of silver. As we no longer use silver or gold as currency, you need to find out the equivalent monetary exchange value of the rates the Prophet Muhammad (SAW) set in your local currency. You can do this by checking the market rate of gold and silver. The two values used to calculate the Nisab threshold are gold and silver.

In the Hanafi madhab, the value of silver is used to ascertain the Nisab threshold and eligibility to pay Zakat. The other madhabs use the value of gold.

Fitrana

Fitrana, also known as Sadaqatu lFitr, is an obligatory act that all Muslims partake in during the Holy month of Ramadan. It purifies our fasts, helps at the time of death and protects us in the grave from punishment. Fitrana is given before Eid prayers begin at the end of Ramadan and the minimum amount set is £5.00. 

The Prophet of Mercy, the Intercessor of the Ummah (May Peace and Blessings of Allah be Upon Him) order a person to make the announcement in the whole city of Makkah that Sadaqatul Fitr is Waajib (Obligatory).

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