Q. Who must pay Zakat?
A. Every person who is sane, an adult (reached puberty), Muslim and sahib-un-nisab must pay Zakat as a duty.
To be a sahib-un-nisab means you possess more wealth than the level of nisab for a period of one lunar year or more.
Q. What type of wealth is Zakat due on?
A. Gold and silver, including ornaments or jewellery containing gold and/or silver
Cash held at home or in bank accounts
Stocks and shares owned either directly or through investment funds
Money lent to others
Business stock in trade and merchandise
Livestock animals such as cows, buffalo, goats, sheep and camels
Produce of mines
Property owned for investment purposes
Q. When should I pay my Zakat?
A. You can pay Zakat at any time of year, but many people choose to do so during the holy month of Ramadan when the reward for our good deeds is multiplied. This is amplified further during Laylatul Qadr, the Night of Power, when good deeds are amplified in value by a thousand times. Also, many people give Zakat during Ramadan each year because it’s easy to track the progress and end of the lunar year, ensuring that no Zakat payments are missed.
Q. Can I pay my Zakat in instalments?
A. Yes, you can. Simply calculate your Zakat payments, divide this by 12 and set up a regular gift each month, specifying Zakat as the type of donation. This will ensure that your Zakat goes directly to eligible causes whilst avoiding the need for a single large payment at the end of the lunar year.
Q. Who can receive Zakat?
A. There are eight categories as outlined in the Qur’an:
The poor, those in debt, the wayfarer, those in the cause of Allah (SWT), the needy, those whose hearts are to be reconciled, to free those in captivity and those who collect and distribute Zakat payments.