Zakat is the third pillar of faith in Islam. It is an alms tax meant to redistribute wealth by shifting resources from the rich to the poor. Unlike voluntary charity, it is obligatory. Any Muslim with surplus wealth must pay the needy a portion of that wealth.
The spiritual, economic, and social impact of Zakat is truly impressive. Paying Zakat diminishes the love for worldly possessions. It reduces poverty and inequality in the economy, which in turn brings down the crime rate. Zakat strengthens communal bonds and unifies society.
Most Muslims know Zakat and its nisaab, that is, calculation. However, we need to be made aware of specific terms and conditions. For instance, many people confuse Zakat Al Fitr with Zakat Al Mal. Let us delve deep into what each type of Zakat means and entails so you can pay the total Zakat you owe without making any mistakes.
Zakat Al Mal explained
The word Zakat, as generally used, refers to Zakat Al Mal. Zakat means ‘purification’ or ’increment,’ and Mal means ‘wealth’; as a result, Zakat Al Mal means ‘purification of wealth’ or ‘increment in wealth.’ The command to pay Zakat was given shortly after the Muslims migrated to Madinah.
Being the third pillar of faith, Zakat is mentioned 30 times in the Holy Quran, of which 27 times it is mentioned alongside Salah. Allah first made Zakat obligatory in Surah Muzzammil, which is as follows:
‘So read as much from it as you can easily, and be firm in devotion, pay the zakat, and lend a goodly loan to God. And what you send for yourself of the good, you will find it with God better and greater in reward. So ask for God’s forgiveness. Indeed God is forgiving and kind.’ [73:20]
Zakat is calculated annually on surplus wealth and other assets owned. The surplus amount, left over after all expenses have been paid and other necessities have been fulfilled, is computed. Any surplus equivalent in value to 87.48 grams of gold or 612.36 grams of silver must be taxed at a rate of 2.5% and paid as Zakat to one or more of the prescribed recipients of Zakat.
Wealth in excess cash and other assets like gold, silver, non-residential property and land, and other financial instruments like shares, bonds, etc, are all subject to Zakat. The purpose of Zakat Al Mal is to cleanse one’s wealth and pay forward to those in need. It creates a more balanced society by reducing inequality and encouraging the spirit of giving.
What is Zakat Al Fitr
Zakat Al Fitr is the obligatory charity that Muslims must pay at the end of the holy month of Ramadan. Zakat Al Fitr means the ‘purification of the feast used to break the fast.’ Also called fitrana, it is paid to make up for any unintentional wrongdoing in a fasting state.
Wasting time, gossiping, or any unnecessary act that is not a major sin but goes against the spirit of Ramadan can negatively affect the rewards we could have gained during the holy month. Paying Zakat Al Fitr is a way to seek Allah’s forgiveness.
Zakat Al Fitr is based on the number of people in the household. The fitrana is paid by the head of the household and is calculated by multiplying the number of people in the household by the market price of a basic meal for one person. It is generally calculated using the price of a certain amount of a staple food product, like dates, raisins, wheat, or barley.
Since it is paid at the end of Ramadan, it can help the needy enjoy Eid Al Fitr. It highlights the spirit of generosity and brings communities closer together in celebrating the conclusion of the holy month of Ramadan.
Differences and similarities between Zakat Al Mal and Zakat Al Fitr
There are some similarities and some differences between Zakat Al Mal and Zakat Al Fitr. The most crucial similarity is that both types of Zakat are obligatory. They must be paid according to their proper calculation.
Another similarity is the prescribed recipients of Zakat. They are the same for Zakat Al Mal and Zakat Al Fitr. Both should be paid to those in need.
While they are both types of obligatory charities aimed at uplifting the poorest in society, some fundamental differences make each one unique. Zakat Al Mal is supposed to purify the income earned and wealth accumulated. Meanwhile, Zakat Al Fitr purifies fasts during the month of Ramadan.
Zakat Al Mal is calculated for an entire year and can be paid at any time throughout the year. Though many Muslims prefer to give Zakat Al Mal during Ramadan to increase the rewards of doing so, it is not an obligation. Zakat Al Fitr, on the other hand, must be paid during Ramadan. The amount has to be paid before Eid Al Fitr, otherwise, it will not be counted as fitrana.
The calculation of Zakat Al Mal and Zakat Al Fitr also differ quite a lot. Zakat Al Mal is 2.5% of the excess wealth and assets owned at the time of Zakat calculation. Zakat Al Fitr is based on the price of food products and is equal to the price of an essential meal multiplied by the number of individuals in the household.
Paying your due share
Zakat can be paid to deserving individuals or groups who fall into one or more of eight categories designated by God in the Quran, including the following:
- The poor (al fuqarâ’), meaning low-income or indigent.
- The needy (al masâkîn), meaning someone who is in difficulty.
- Zakat administrators.
- Those whose hearts are to be reconciled, meaning new Muslims and friends of the Muslim community.
- Those in bondage (slaves and captives).
- The debt-ridden.
- In the cause of God.
- The wayfarer, meaning those who are stranded or traveling with few resources.
Zakat, whether on wealth or the fasts kept during Ramadan, has the same purpose: to improve the lives of the poor. Although the amounts and ways of payment may differ, there is little difference in spirit.
The alms tax automates the process of improving equality within the economy and reducing poverty. It is a way for the rich to help the poor without hurting their dignity. This is because Zakat is obligatory, not voluntary. By paying the Zakat, individuals are not doing anything special; they are simply following the commands of Allah.
Zakat is a beautiful instrument embedded within an Islamic state’s economy. It is a social security scheme that makes it possible to help the poor and improve the circulation of resources. It encourages people to become generous and leads to social harmony and growth.
Author: Rafia Tahir is a Quran scholar and an Islamic blogger, dedicated to sharing the message of Islam. Her work enlightens and connects, making Islamic teachings accessible to a wide audience. She occasionally writes articles for Muslim And Quran.
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