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Zakah on Banknotes
Zakah on Gold
Zakah on Silver
Zakah on Ornaments
Zakah on Debts
Zakah on Capital Goods
Zakah on Cattle
Zakah on Merchandize
Zakah on Fruits & Other Crops
Zakah on Minerals
Zakah on Extracted Treasures


Zakah on legal tender (currency)

1. Money accounted for Zakah is that beyond one's basic needs.

2. The Nisab liable to Zakah on cash, banknote and coins is to be determined according to its corresponding value of gold (85 grams of fine gold), based on the current rates of the country in which the payer of Zakah resides.

3. If one's property of cash, banknote and coins is less than the Nisab, according to the Hanafi Juristic School, the value of other cash property (gold or silver) may be added to the value of cash, banknote and coins so as to complete the minimum amount counted for Zakah. Once the total reaches the Nisab, Zakah falls due.

4. Once Zakah is paid on a property, it absolves the owner, even though the property is then transferred to a type different from that on which Zakah has first been paid. For example, when crops or cattle are sold, thus transferred to cash money, this new type of property is not liable to Zakah at the same year on which Zakah is paid on the former type. This in fact leads to double payment of Zakah, which is contradicted by the Prophet's Hadith in which he observed, "There is no double payment of Zakah."

Debts owed to or by the payer of Zakah should follow the rules governing Zakah on debts.



Zakah on legal tender (gold)

1. If one's gold properties are less than the Nisab, according to the Hanafi Juristic School, the value of gold may be added to the value of silver currencies, coins, and banknote so as to complete the minimum amount counted for Zakah. Once the total reaches the Nisab, Zakah falls due.

2. Debts owed to or by the payer of Zakah should follow the rules governing Zakah on debts.



Zakah on legal tender (silver)

1. If one's silver properties are less than the Nisab, according to the Hanafi Juristic School, the value of silver may be added to the value of gold currencies, coins, and banknote so as to complete the minimum amount counted for Zakah. Once the total reaches the, Nisab Zakah falls due.

2. Debts owed to or by the payer of Zakah should follow the rules governing Zakah on debts.



Zakah on ornaments and golden and silver objects

1.Though ornaments worn by women are not counted for Zakah, there must be criteria for defining the value of these ornaments. Such value is estimated according to the standard of living. However, ornaments kept for purposes other than wearing are inevitably counted for Zakah.

2.Likewise all ornaments that are not in current use because they are out of fashion are counted for Zakah.

3.Zakah is obligatory on unlawful gold or silver ornaments so long as they reach the allotted Nisab, whether by themselves or added to other jewelry. Such unlawful ornaments may include bracelets and watches worn by men and the ornaments for men when used by women. Zakah falls due if the amount of unlawful gold or silver reaches the Nisab by itself or when added to other amounts.

4.Lawful ornaments, such as silver rings for men, on the other hand, are not counted for Zakah.

5.Silver objects unlawful to use, such as spoons and vessels are not counted for Zakah unless they reach the alloted Nisab whether by itself or when added to other silver possessions.

6.Debts owed to or by the payer of Zakah should follow the rules governing Zakah on debts.



Zakah on Debts

1. Debts are counted for Zakah in case they are recoverable. After the repayment, the money is to be added to the total sum of properties counted for Zakah.

2. The amount of debt owed by the payer of Zakah is to be excluded from the portion liable to Zakah, provided that he remains in debt before Zakah falls due and finds no other property not liable to Zakah that exceeds his basic needs to repay his debt therefrom.

3. In long-term, installment debts, such as housing installments, and other debts that finance fixed assets, which are not counted for Zakah, the payer deducts the amount of annual installment all at a time, then calculates the total sum of the remaining property and pay Zakah on it if it still reaches the Nisab of Zakah.

4. Loans that are invested to finance any commercial business are to be deducted from the total sum liable to Zakah, in case the payer does not have fixed assets exceeding his basic needs.



Zakah on capital goods

1. Capital goods stand for all properties that are not invested as trading objects. Treated as permanent assets, these goods are not counted for Zakah. Rather, Zakah is to be paid on their revenues if they remain after the lapse of a full year.

2. Revenues are added to the amount of Zakah payable on the owner's cash money and commercial commodities after the lapse of a full year at the rate of 2.5%. This view is adopted by the majority of jurists and agreed upon by the Fatwa and Legal Supervision Authority, the Kuwaiti House of Zakah.

3. Debts owed to or by the payer of Zakah should follow the rules governing Zakah on debts.



Zakah on cattle

1. The cattle raised for trade will be treated exactly as the commercial commodities; Zakah on them will be calculated on the basis of their value not number. Therefore, Zakah falls due on the cattle if their value reaches the minimum amount of money liable to the payment of Zakah. In this case, the cattle owner should add such value to what he possesses of money and commercial commodities.

2. Imam Malik and Al-Laith are of the view that all kinds of cattle, whether grazing or stall-fed, are counted for Zakah. This view is also held by the Legislative Committee of the Zakah House in Kuwait.

3. The Khultah, which results owing to the unity of pasture, watering place and stall, implies treating the sheep owned by two or more persons as owned by only one person. Thus it affects the estimation of the Nisab liable to the payment of Zakah and the duration after which Zakah is payable.

4. The term cattle includes camels, cows (including buffaloes) and sheep (including goats). ‏

5.Offspring of the cattle are to be added to their mothers and follow them in determining the lapse of a full year. If one owns twenty-seven old cows and three young ones, the young cows sould be added to them in order to complete the Nisab. In this case Zakah falls due.

6.Cattle exploited in cultivation are not counted for Zakah. This is confirmed by the Prophet's saying, ''Nothing is due on the cattle used in cultivation.''

7. If the possession is interrupted during the year due to selling cattle or bartering them, a new year is to be calculated from the day on which the cattle are sold or bartered, provided that the owner did not do that with the intention of evading the payment of Zakah. This is confirmed by the Prophet's Hadith in which he maintained, ''Zakah is not due on a property unless after the lapse of a full year.''

8.According to Abu Hanifah, Zakah on cattle can either be given out of the cattle or in cash proportionally.



Commercial commodities

1. Fixed assets: such as machinery, buildings, trucks and equipment. All fixed assets are not liable to Zakah.

2. Intention is the criterion of considering properties as commercial commodities or not. If a person purchases a car for personal use, but may sell it if it sells good, it should not be counted as a commercial commodity. But when a person purchases a number of cars for trade, then uses one of them, the used car will also be liable to Zakah as a commercial commodity.

3. The value of commercial commodities should be estimated according to the wholesale price, whether it will be sold by retail or by wholesale. This is the view approved by the Juristic Academy in Mecca.

4. A merchant should estimate the value of his commercial commodities according to the current market rate, whether it is higher or lower than the sale price. The sale price meant here is the price when Zakah falls due.

5. If the company pays Zakah on its shares, the shareholder is not obliged to pay Zakah on his shares to avoid double payment of Zakah. Otherwise, a shareholder will be obliged to pay Zakah on his shares as follows: * If the shareholder exploits his shares in trade, the amount of Zakah due on his shares would be 2.5%, according to the market value at the time Zakah becomes due. * However, if shares are invested to obtain annual revenues, Zakah is paid in the following way: a) If the shareholder managed to examine the accounts of the company and know the amount of Zakah due on his shares, he would have to pay 2.5% as Zakah on this basis. b) If he does not have knowledge of the company accounts, he may simply add the share revenues to the total sum of his property counted for Zakah and pay a rate of 2.5% as Zakah after the lapse of a full year since the wealth has reached the allotted Nisab.

6. Though dealing in securities is not lawful, Zakah is due on their face value, which is to be added to other kinds of property, after reaching the Nisab and the lapse of a full year. The payable amount of Zakah is 2.5 %.

7. All kinds of debts whether owed or due should be included under the item of debts.



Zakh on crops and fruits

1. According to Imam Abu Hanifah, Zakah is due on all agro products and fruits produced through land investment. However, plants that grow without human efforts, such as wood trees, grass, reeds, etc. are not counted for Zakah, unless they are intended to be invested in trade. In such case they will be treated in the same way as commercial commodities.

2. Unlike other kinds of property, Zakah on crops and fruits does not become due after the lapse of a full year since reaching the Nisab. Rather, the determining factor here is the agricultural season and crop. This is confirmed by the Qur'anic verse, "But render the dues that are proper on the day that the harvest is gathered." (Surah Al-An`am No. 6, Verse: 141). Thus, Zakah will be due on each crop produced by the land at the same year.

3. Crops and fruits are not counted for Zakah unless they are intended to be invested in trade. In such case they are treated in the same way as the commercial commodities.

4. In case irrigation is sometimes made with the aid of an uncostly method and some other times with the aid of a costly method, the amount of Zakah would be estimated according to the major method of irrigation. But in case of equality, a fixed amount of 7.5% of Zakah would be given.

5. According to Ibn `Abbas and other jurists, all expenditures of ploughing, planting, fertilizing, and harvesting are to be deducted from the total amount counted for Zakah, provided that these expenditures do not exceed the rate of one-third.

6. A lessee of a land has to pay Zakah on its produce of crops and fruits. The owner of the land, on the other hand, will add the letting value to other cash money in his possession and pay Zakah on them at the rate of 2.5%.

7. In case the produce of land is shared due to a contract or crop-sharing (which implies that the owner appoints another person to take care of cultivating or irrigating the land in return for a portion of its yield), the Zakah is due on both parties once the yield reaches the Nisab.

8. Crops and fruits of like kind are to be added and estimated together, while those of different kinds, like fruits and vegetables, are to be estimated separately.

9. Though the owner of land should pay Zakah from the crop, some scholars maintain that it is permissible to pay it in cash according to the market value.



Zakah on mineral resources

1. Zakah on minerals is not paid on annual basis; it is promptly due on any extracted and filtrated portion of minerals so long as it reaches the Nisab liable to the payment of Zakah.

2. The Nisab of minerals liable to Zakah is estimated in accordance with the value of the Nisab of gold, i.e. 85 grams, no matter whether the minerals are extracted one at a time or in parts. In case the work ceases because of emergency such as repairing equipment or due to a strike on the part of the workers, the extracted minerals are to be added together in a way to complete the minimum amount counted for Zakah. However, in case the work ceases due to the transfer of the activity or for another reason, then resumed again this interruption is to be considered in calculating the minimum amount counted for Zakah in a way that the new extracted amounts of minerals will not be added to the amounts extracted before the halt.‏

3. The term 'minerals' refers to all minerals extracted from the earth or the seabed. Zakah on pearls, coral, fish, and amber is to be paid in the same way as commercial commodities.



Zakah on buried treasures

Neither the lapse of a full year nor the fulfillment of Nisb is a condition for paying Zakah on buried treasures. The payable amount of Zakah is 15%. This opinion has been unanimously agreed upon by the majority of Muslim scholars. Allah's Messenger (peace be upon him) said, "As for buried treasures, one-fifth is due (as Zakah)."


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