Al-Zakah: The Islamic Financial Responsibility

AL-Zakah: A source of Social Security for Muslim Ummah - The Islamic Financial Responsibility

• This is the most neglected pillar of Islam, that's why Allah's blessing is not with us and we are still dependent on others even though Muslims are blessed with all types of natural resources. To help in understanding this Pillar of Islam, we have published a complete manual, which explains all that you need to know about Az-Zakah. This manual is a unique document ever written on this subject in the west. It not only explains what is Zakah? Who should pay Zakah? When Zakah becomes obligatory? Doctrine of Tamleek, Rates of Zakah, Zakatable items, Non-Zakatable items, Ard-ul-Tijarah and Accounting methods of calculations, but also includes a Short Form and a Long Form containing eleven schedules for all kind of businesses to help you calculate your Zakat-ul-Mall and in order to establish this 3rd. Pillar of Islam.
• Literally, Zakah means, "to purify." Without the payment of Zakah, whole wealth of a person is impure, called "Kunz," which, in the shape of gold, silver or other metal will be heated up in the hellfire and the one who has not given Zakah shall be branded with that as a punishment. Az-Zakah is not a poor due or a levy or an income tax or a property tax, and it should not be considered like one. It is an act of worship and as such classified to be the 'Third Pillar of Islam.' The basic principle underlying this third Pillar of Islam (Az-Zakah) is to encourage the Muslims to put their wealth in circulation and not to hold it depriving the others from its benefits of changing hands through business and trade. If any one holds the wealth from circulation for one full year, he should pay Zakah equal to the minimum benefit it would have yielded to the poor, needy, in the way of Allah and so on. This minimum benefit assigned by Prophet Muhammad (peace be upon him) is its 1/40th or 2.5%. Based on the above stated principle, merchandise inventory change over of several times, even if amounting to millions of dollars during the year has no effect on the Zakah calculation and Zakah is only on the ending physical inventory at the end of the fiscal year. Similarly assets, which are used in business to generate income, are exempt from Zakah because those assets are responsible for putting the wealth in circulation. Zaka-tul-Mall is based on the principle of paying thanks to Allah for His grace and bounty. Zakah is an act of worship and a method prescribed by Allah Himself for paying thanks to Allah in order to be His 'Abdan shakoor' (grateful devotee) therefore; it is not a levy or burden like income tax or a property tax. This is a Divine Commandment for the distribution of wealth among the community members. Another major difference between Zakah and Taxation is that the person paying the Zakah is not expecting any worldly benefit in return, while the person paying income tax is expecting the community or government services in return. Do you know that Zakah rate is not only 2½ % but also 5%, 10% and 20%? To study and understand this Third Pillar of Islam, the Institute of Islamic knowledge has published a complete manual along with eleven schedules for the calculation of Zakah for multi million dollar businesses, professionals such as doctors, ranching operation, mining operation, fisheries as well as oil industry.

Important Note:

In distribution of Zakah, relatives come first if they qualify as recipients of Zakah, however, Zakah can not be given to your own parents and children. After this category, we suggest that you consider the category of "Wa Fee Sabeelillah." In this category, the best one to consider is "Al-Qur'an Trust Fund" for printing and free distribution of the Qur'an and other Da'wah material to the non-Muslims for conveying The Message of Allah and the propagation of Islam.