Question

السلام عليكم و رحمة الله و بركاته
Can I give Zakat to someone in India who is very poor and wants to start his own business, so he doesn't have to take Zakat again?

Answer

Wa alaykum al-salam

If the poor individual does not have any wealth that reaches the amount of nisab (threshold) or if he does have wealth that reaches the nisab but it is immersed in hajat e asliya (day-to-day essentials like a home or clothing etc.) and beyond these essentials he does not have any wealth that reaches the nisab, then it is permissible to give him zakah as he is deserving of it [Radd al-Muhtar 3/333]. However, he must not be from the Banu Hashim (children of either one of the following: Mawla Ali, Sayyiduna Ja’far, Sayyiduna Aqil, Sayyiduna Abbas or Sayyiduna Harith ibn Muttalib radiyAllahu anhum) [al-Fatawa al-Hindiyyah 1/189].

And Allah knows best
Muhammad Kalim
21 Ramadan 1438

Verified by Mufti Zahid Hussain al-Qadiri

Question

Salam Alaikum

If a person has ordered some merchandise which he will sell for profit but it has not arrived yet and is thus not in his possession does he pay zakat on it?

JazakAllah

Usman Ali

Al-Jawaab:

Wa Alaykum Al-Salam

If a tradesman has made an advanced payment for goods but has not received the goods by the day his Zakah year is complete, he is not obliged to discharge Zakah on them goods on that day and neither on the amount he has paid in advance because he does not own that anymore. This is because zakah is only necessary when one has complete ownership of the goods and possession of the goods is condition for complete ownership. It is mentioned in Al-Bahr Al-Raa'iq,

'A man bought a product for trade which values at two hundred dirhams, he made the payment in advance but did not receive the product in his possession and his year came to an end, then the slave died in the possession of the seller, the seller has to pay zakah on two hundred'

It is clear from the above that the zakah of the advanced payment has to be paid by the seller and not the buyer. As for the goods he has not received, due to the absence of complete ownership (al-milk al-kaamil), he is not obliged to pay zakah on them. Imam Ibn Nujaym further clarifies,

'The word 'al-milk' has been mentioned unconditionally therefore it refers to 'al-kaamil' which means the product must be in his possession and at his disposal. Therefore, zakah on that which the buyer bought for trade is not obligatory upon him until possession.'

Once the complete ownership has been established, the preferred opinion is that zakah will have to be paid for the past and this is why the person may decide to include it in his zakah at year end even though he has not yet established complete ownership of the goods because he will have to pay zakah on it once he does establish complete ownership. Imam Ibn Nujaym clearly comes to this decision in his discussion on this matter,

'Therefore, the meaning of their statement, 'zakah is not obligatory' refers to before his possession (of the product) and as for after possession, then zakah of the product is obligatory for that which has past similarly to al-dayn al-qawi (loan)'

This means that zakah on the goods that he has paid for in advance but not yet received is obligatory upon him but not due to be discharged until he has complete ownership of the goods. If he does not receive all the goods at once but rather bit by bit, then zakah becomes due when he has received an amount that is equal to a fifth of the nisaab of zakah and Allah knows best.

Zahid Hussain Al-Qadiri
26th Ramadan al-Kareem 1438AH 

Question

I have some questions regarding Zakaat and Interest which i would like to request you kindly guide me on:

INTEREST
1. What should one do with interest earnings?
2. Can interest earnings be given to a Muslim?
3. Often we hear that you can build toilets using the funds. Can we build a toilet and hand it over to an individual who can maintain the place and charge a fee/make a livelihood out of this.
4. Can we use the money to maintain a public road outside ones premises which is used by public and themselves.

ZAKAAT
1. Who is eligible to receive zakaat?
2. In a dire situation, can Zakaat be given to Non-Muslims?
3. If an individual owns more than one property, should he give zakaat on the value of the property apart from the rental earned as Zakaat is eligible on surplus wealth?

SADQAH/LILAH

Can one take saqah and niyaz as Lilah, if not then please guide where Lilah funds should be used?

Answer

Riba (usury and interest) is Haram and anyone who denies the fact that it is forbidden is a kafir. The Messenger of Allah (peace and blessings be upon him) cursed the one who gives, the one who takes, the one who witnesses and the one who writes the contract of usury, as per the narration of Sayyiduna Jaabir (Allah is pleased with him) recorded by Imam Muslim. In the narration recorded in Mishkaat Al-Masaabeeh, the Messenger of Allah (peace and blessings be upon him) said that one dirham of usury taken on purpose is worse than committing zina (adultery and fornication) thirty six times.

1. If a person possesses Haram wealth then he must discharge it all to the poor, without the intention of any reward. The person must not assume that he is doing a favour for the poor. In fact, the poor are doing him a favour by taking it. Once a person has given the unlawful wealth to the poor, he/she must seek forgiveness and then hope for the mercy of Allah. One must not intend to receive reward when discharging unlawful wealth to the poor. It is mentioned in Fatawa Ridawiyyah: 

   “It is Haram to use it on himself and it is kufr to intend reward when giving it to the poor.”

2. The earnings from interest should be given to poor Muslims.
3. It is not permissible to use unlawful wealth to make toilets. It must be given in the ownership of the poor. Once the poor person becomes the owner, then he/she may use the money to make toilets.
4. This is also not permissible which is already clear from the answers above, and Allah knows best.

The answers for the questions regarding Zakah are as follows:

1. Those who are eligible to take Zakah are mentioned in Surah Tawbah, verse sixty. They are:
   1. Faqeer - this is a person who does have something but not enough that Zakah becomes obligatory upon him. He may have enough to cloth, shelter and feed his family but not so much that he becomes the owner of a Nisaab (the threshold for Zakah becoming obligatory); or he does have so much wealth but he needs to use it for his necessities of livelihood, such as a house to live in and a form of transport for travelling etc.
   2. Miskeen - this is a person who does not have anything. He has to beg in order to cloth and feed himself. It is permissible to beg for such a person.
   3. Aamil - this is a person who has been appointed by the Muslim ruler to collect Zakah from the people. He can be given a share from the Zakah he has collected, as long as this does not exceed half of what he has collected. Those people who set out to collect charity for Masaajid and Madaaris are not Aamileen, even if they have been appointed by the Masaajid or Madaaris or even if they have been appointed by a Mufti.
   4. Riqaab - this is a half freed slave who has been given leave by his master to go out and earn in order to pay for his freedom. Zakah can be given to such a person so that he can pay for his freedom.
   5. Gaarim - this is a person who is in so much debt that if he pays his debt, he will not be an owner of a nisaab.
   6. In the path of Allah - this is a person who has decided to leave his worldly life for the Deen. For example, a person wishes to go to Jihaad or a person wishes to become an Aalim of the deen, then it is permissible to give Zakah to him, although he is capable of earning for himself. A student of the Deen can also ask for Zakah from people. If a person wishes to go for Hajj but cannot afford it, then it is permissible to give Zakah to him/her; however, for such a person it is not permissible to ask for Zakah from people.
   7. Ibn Sabeel - this is a person who is travelling and does not have any money or does have money, but due to travelling and being away from home, does not have access to his/her wealth. Such a person can only take the amount that fulfils his/her need.
2. It is not permissible to give Zakah to a disbeliever. It is mentioned in Hidayah that a unanimous consensus has ruled out the permissibility to give Zakah to the disbelievers. In dire need, one may give voluntary charity if he deems beneficial.
3. A person is not obliged to pay Zakah on any property, as long as he did not buy it to sell. If a person bought a property for him to live in, he does not have to pay Zakah on that property. If a person bought a house to rent out, he does not have to pay Zakah on that property. He must pay Zakah on the savings he has from the rental income. One must pay Zakah on a property, if he bought it with the intention of selling. If a person bought a property with the intention that he will only sell it if he receives a good offer, even then he does not have to pay Zakah on the property. If he bought the property to rent out or to live in, and then later decided to sell it, he still does not have to pay Zakah on that property. However, when he does sell the property, Zakah will be due on the income from the sale at the end of his year on the amount that he has left, and Allah knows best.

Sadaqah can be obligatory (Fard) like Zakah or necessary (Waajib) like Fitr or voluntary (Nafl) like giving gifts to people. Usually when Sadaqah is said on its own, in our custom it is regarded as voluntary charity. This is also known as Li-Allah or Niyaaz in our custom. Any Muslim, rich or poor, is eligible to take and use voluntary charity. Even when a person buys a gift for his partner, it is a voluntary charity. It is better to give this Li-Allah to the family and relatives, neighbours, Scholars of the Deen, friends, Masaajid and Madaaris etc. One must remember that if Allah has given wealth to a person, then the poor have a right of receiving a share from it. A person is judged in the court of Allah by the percentage of his wealth that he has given in the path of Allah, not by the amount. A person who owns a hundred pounds and has given a pound in the path of Allah is better than the person who owns a million and has given a thousand. Every man who hoards excess wealth for the future will be questioned on the day of Judgement why he did not distribute to those that needed it.

And Allah knows best.

Zahid Hussain Al-Qadiri
(Beggar at the doorstep of Scholars)
26th Ramadan Al-Kareem 1436 AH

Question

Is it permissible to give Zakaat to a charity that propagates the deen?

Answer

It is permissible to give Zakah to a charity, if the charity is run to propagate the knowledge of the Deen with the condition that Heelah Shar’iyyah (Legal Scheme) is practised. This is only permissible in the case that the Charity is in need of money to continue propagating and teaching the knowledge of Islam. The Scholars have permitted this, because the perseverance of Islam is based on propagating and teaching the knowledge of Islam. Heelah Shar’iyyah is a practise established from the Hadith, which has also been recorded by Imam Bukhari, where the Messenger of Allah ate from food that was given as Sadaqah and later gifted to the Prophet Muhammed (peace and blessings be upon him).

Heelah Shar’iyyah is to make a poor person (who is eligible to take Zakah) the owner and then to advise him to give it to the charity. The person who gave the Zakah will be rewarded for giving Zakah and the poor person will be rewarded for the charity in the path of Allah. After the Legal Scheme has been executed, the money can be used for anything related to the running of the charity,which includes the costs of building, decorating, food, books, paying wages to the workers or teachers etc.

In Al-Durr Al-Mukhtaar, it says:

“Heelah is to make the poor the owner and then to order him to give in these causes.”

In Radd Al-Muhtaar, it says:

“The reward of Zakah is for him and the reward of this good deed is for the poor.”

Imam Ahmed Raza writes in Fataawa Ridawiyyah:

“If the money is given to a masraf of Zakah (one eligible to take Zakah) and (he) is made the owner, he may give it to the Madrasah (Muslim School); then it can be used for the wages of the teachers, employees and all other uses related to the Madrasah.”

It has become a wide practise globally to give Zakah to the Muslim institutes that are working to propagate and spread the knowledge of Islam. It is important to mention that this money is Zakah when giving it to the charity or institute. In this case, the person will be relieved from his obligation and the charity or institute will be his official representative that will now be obliged to ensure that the Zakah is given to one who is eligible to take Zakah and Heelah is practised when needed. The charity or institute is only permitted to practise Heelah Shar’iyyah if there is a need and enough funds have not already been received through other donations. Those Masaajid and Madaaris (plural for Masjid and Madrasah), who take Zakah via Heelah Shar’iyyah, although they do not need it and they already have enough funds, are committing Haraam; and the people are not relieved from their obligation if they give to such places. One should only give his Zakah for Heelah Shar’iyyah to an institute which is in need.

And Allah knows best.

Zahid Hussain Al-Qadiri
(Beggar at the doorstep of Scholars)
2nd Ramadan Al-Mubaarak 1436 AH

Question

If one year on possessions will complete on 1st Zi Qa'ad for the first time and a person wants to give Zakat on those possessions during Ramdan (before the completion of the year), can he do so?

Answer

It is permissible to discharge Zakah before the complete year has passed as long as the person discharging Zakah is an owner of nisaab at the time of discharge. It is also permissible to discharge Zakah a few years ahead. If one does discharge his Zakah early then at the end of his year he must check his complete estate upon which he is obliged to pay Zakah to ensure he has not given less. If he has given less then he must now pay the due that is left to pay. If he has paid more than that which was due then he may regard it as part of his Zakah for the following year. In the case that he paid Zakah early and at the completion of his year he became bankrupt and lost all his estate and did not remain an owner of the ‘nisaab’ then what he gave prior as Zakah will now become a voluntary sadaqah.

It is mentioned in Bahar-e-Shariat with reference to Fatawa Alamgiri,

“An owner of the nisaab can discharge Zakah before the completion of his year with the condition that he remains an owner of the nisaab at the end of the year. If he does not remain an owner of the nisaab at the end of his year or in between the year the nisaab has completely gone then whatever he discharged has become nafl (voluntary). As for he who is not an owner of a nisaab, he cannot discharge Zakah which means if he did discharge something in between his year and at the end of his year became an owner of the nisaab, that which he discharged will not be regarded as his Zakah”.

Sadr Al-Shariah further writes with reference to Fatawa Alamgiri,

“An owner of a nisaab can also give his zakah a few years ahead”.

And Allah knows best.

Zahid Hussain Al-Qadiri

(Beggar at the doorstep of Scholars)

29 Sha’baan 1436 AH

Question

As salamu alaykum.
May i know some facts regarding zakath,
1. What assets is it taken out on?
2. I think you have to own the asset for 2 years and the percentage is 2.5%, am I correct?
3. When distributing, first comes the family right?
Any other things that have to be known?

In a scenario where you have money on the books ie you bought something from someone on credit and sold it to another person on credit. In this case your profit is already in the books but you only actually get the cash once the person who you sold the goods to pays you back. What is the ruling of zakath on transactions like this?

Answer

Wa Alaykum Al-Salam

1. Zakah is paid on all assets, after deduction of liabilities and necessities of livelihood. Liabilities such as: money owed or immediate debts etc. Necessities of livelihood are those belongings that are essential for the ease of his life such as: his home for living, transport for travelling, clothes, appliances, crockery, cutlery, phone and furniture etc. For a professional, his apparatus, instruments or machinery are also regarded essentials of livelihood.
2. In Zakah, the lunar year is considered rather than the solar. The lunar year is about 355 days. If the person has accumulated wealth, which is above the nisaab threshold and has held it for a whole lunar year, then zakah becomes due upon the end of this first year. The amount due is 2.5 percent of the assets upon which he has to pay zakah.
3. From those who are eligible to take zakah, it is more rewarding and best to give to one’s own brothers and sisters first, if they are eligible; then their children; then to the paternal uncles and aunts; then their children; then the maternal uncles and aunts; then their children; then to the relatives; then to the neighbours; then to the work colleagues; then to the other people of your village, town or city. It is not permissible to give zakah to one’s own spouse, usool and furoo. Usool are your origin: meaning your parents, grandparents, great grandparents and so on. Furoo are the opposite: meaning your children, grand children, great grand children and so on.

In regards to the scenario mentioned in the question, Zakah is necessary on the money he has not yet received, due to the fact that ownership has been established. However, Zakah will only be due for discharge from it when he receives it and it is in his possession. When it is in his possession, he will have to discharge Zakah for the past, as well as from the time he became the owner of it. Therefore, it is best for him to include it now, rather than worry about it when he receives it.

And Allah knows best.

Zahid Hussain Al-Qadiri
(Beggar at the doorstep of Scholars)
21st Sha’baan 1435