1. By Md. Shahedur Rahaman Chowdhury

2. 5 pillars of Islam Shahada Salah Zakat Fasting Hajj

3. The Importance of Zakat  One of the five pillar of Islam 1. Syahadah - is a statement professing monotheism and accepting Muhammad as God's messenger.monotheismMuhammadGod's 2. Solat - Pray 5 times a day 3.ZAKAT- giving is the practice of charitable giving by Muslims based on accumulated wealth 4.Sawm / Siyam – Fasting in the month of Ramadhan 5. Hajj - is a pilgrimage that occurs during the Islamic month of Dhu al-Hijjah to the holy city of Mecca,pilgrimageIslamic monthDhu al-Hijjah  Avoid stinginess  Encourage donations  As a mean to express thanks to Allah  Establish sympathy and avoid jealousy 3

4. Zakat is an important duty for Muslim as mentioned in the Al-Quran: "Keep up prayer and pay zakat". While prayer is a physical form of worshipping Allah, zakat is a material form. Zakat is compulsory : "Take from their wealth charity (alms) to purify them and to cleanse them thereby, and pray for them." [At-Taubah: 103] Zakat from the perspective of the Islamic Law

5. In one hadith from Bukhari, Abu Hurairah (r.a.) narrated that the Prophet SAW said: "Whoever is made wealthy by Almighty Allah and does not pay the zakat of his wealth, then on the Day of Resurrection his wealth will be made like a bald-headed poisonous male snake with two black spots over the eyes. The snake will encircle his neck and bite his cheeks and say, 'I am your wealth, I am your treasure'. " Dalil in Hadith

6. “He [Pharaoh] will go before his people on the Day of Judgment, and will lead them into the Fire.” (Surah Hud : 98) Allah (SWT) said,

7. Allah (saw) warns those who refuse to pay the Zakat: Allah (SWT) tells us in the Quran: “They who hoard up gold and silver and spend them not in the way of Allah, Announce to them a painful torment O Muhammad (saw) On the day when it all will be heated in the fire of hell, and their foreheads and their flanks and their backs will be branded with it, (and it will be said to them). This is the treasure which you hoarded for yourself, now taste of what you used to hoard.” (At Taubah:34-35) Allah (SWT) tells us in the Quran: “They who hoard up gold and silver and spend them not in the way of Allah, Announce to them a painful torment O Muhammad (saw) On the day when it all will be heated in the fire of hell, and their foreheads and their flanks and their backs will be branded with it, (and it will be said to them). This is the treasure which you hoarded for yourself, now taste of what you used to hoard.” (At Taubah:34-35)

8. The first Muslim Caliph Abu Bakr As- Siddiq (r.a.), said: "By Allah (SWT), if they refuse to pay me (even) a bridle which they used to pay the Messenger of Allah (pbuh), then I will fight them because of their refusal." [Muslim] The first Muslim Caliph Abu Bakr As- Siddiq (r.a.), said: "By Allah (SWT), if they refuse to pay me (even) a bridle which they used to pay the Messenger of Allah (pbuh), then I will fight them because of their refusal." [Muslim]

9. In another hadith by Abu Dawud, the prophet s.w.t. said: “Allah has made zakat obligatory simply to purify your remaining property, and He made inheritances obligatory that they might come to those who survive you.” In another hadith by Abu Dawud, the prophet s.w.t. said: “Allah has made zakat obligatory simply to purify your remaining property, and He made inheritances obligatory that they might come to those who survive you.”

10. The History of zakat payments Prior to Hijrah, zakat is only compulsory to those wealthy people who are close with the Prophet s.a.w. At that time, the obligation to pay zakat is based only on their awareness, willingness, discretion. An organized system of zakat (for instance having the conditions for nisab, rate and haul ) was only applied after the 2 nd year of Hijrah.

11. Zakat or Obligatory Charity The third Pillar of Islam is an obligatory charity. The deep meaning of Zakat is: Increase, Purification and Blessing or praise

12. Zakah Zakah is a portion of one’s wealth that must be given to the poor or to other specified causes. The word “zakah” comes from the verb meaning to purify or cleanse. It is the third Pillar of Islam and is obligatory for all those who are financially able.

13. Literally – cleansing or purifying of something from dirt or filth (cleaning) – Praise, growth and increase » References: Dr Yusof Qardawi Theologically – Spiritual purification resulting from paying zakat Legally / Syariah – Transfer of ownership of specific wealth to specific individual (s) under specific conditions – Religious payment made by a Muslim from his wealth or income or business or crops or animals in the form of money or crops or animal according to certain rate to the zakat authority that is Pusat Pungutan Zakat (PPZ). Definition of zakat

14. Jurisprudential meaning of Zakat The jurisprudential meaning of Zakat is the payment of a portion of wealth from one’s own wealth to a defined category of needy recipients, who have a natural right on one’s wealth when certain conditions of wealth are fulfilled.

15. It is an obligatory financial worship to Allah It is an act of worship that purifies the wealth of a rich Muslim, as well as brings increase to it through the blessings of Allah when the wealthy chooses to share it with the less fortunate or needy.

16. Why? The secondary objective of Zakat is to fulfilment of one’s obligation for the society and taking care of them who need one most.

17. Why? Every year one purifies one’s wealth to obey Allah and to appreciate Allah’s abundant gifts, which are not just to enjoy selfishly but to share with others. This is to fulfil the obligations under the 3 rd pillar of Islam.

18. Why? Paying zakat is Fard (compulsory). The Qur'an says that only those who pay zakat are in the "brotherhood of faith“ The Holy Qur'an also says that Zakat purifies assets and creates virtue Zakât is the major economic means for “establishing social justice and leading the Muslim society to prosperity and security. “

19. ZAKAT ZAKAT FITRAH ZAKAT ON WEALTH

20. Types of Zakat 1. Zakat fitrah (al-fitr) a flat fee or levy imposed on each person. due from the starting of Ramadhan and ends before the eid’ fitr prayer. 2. Zakat from earnings (al-mal) – a religious levy on wealth. Traditional types of wealth subject to zakat  Agricultural produce, reared animals, business, gold and silver. New types of wealth subject to zakat  Various forms of wealth based on the consensus of Islamic scholars and jurists e.g. employment income, professional income

21. Zakat Al Fitr / Zakat Fitrah To contribute a certain amount of staple food or pay an equivalent monetary amount in the month of Ramadan before the Muslim festive celebration or Eid al Fitr (Ariff, 1991). The zakat al-fitr flat fee is one sa` – a little more than two kilograms of wheat, barley, dates, or rice – or the monetary equivalent (Al Qardawi, 1997).

22.  Compulsory on every Muslim  Not subjected to nisab or haul  The rate between RM4 - RM5 per person  Payable from the first day of Ramadhan until before the Aidil Fitri prayer.  The best is on the eve of Shawal 22 Zakat Al Fitr / Zakat Fitrah / Zakat on Self

23. ZAKAT FITRAH - Example Can be paid in the form of staple food; rice, or in the form of money. For example: 1430H/2009, the rates were:  2.268 kg (nisab / kadar)  RM2.84 (according to the value of fragrant rice)  RM1.93 (according to the value of Thai rice) Zakat bagi negeri-negeri di Malaysia bagi tahun 2009 (kecuali Kelantan), mengikut tahap kehidupan setiap negeri: Selangor, Wilayah Persekutuan, Pahang, Perak, Kedah dan Pulau Pinang – RM7 Terengganu – RM5, RM7 dan RM8 Johor – RM5 dan RM7.50 Sabah – RM6.60 Negeri Sembilan – RM6.50 Melaka – RM6.30 Sarawak dan Perlis – RM6 *Kadar zakat ditentukan oleh Majlis Agama Negeri

24. Income refers to earnings from salary, dividends or other receivables income from services or consultation. Salary include annual, deferred (tunggakan), allowance, commission, bonuses, consultation fees. Zakat on Wealth / Al- Mal

25. ZAKAT ON WEALTH / Al- Mal Depends on the amount of wealth that you have and how long (haul) you had it for. Your wealth has to reached it’s nisab (the minimum amount upon which Zakat is payable) and reached it’s haul (one lunar year) Zakat al-mal or zakat from earnings is levied only on Muslims whose wealth exceeds a threshold called nisab (Kahf, 2005).

26. 26 The main aims of zakat The worship to Allah for all His bounties to mankind Al-Baqarah: 267 “Oh ye believe! Give of the good things which ye have (honorably earned). And of the fruits of the earth which we have produced for you..” Assist the poor and the needy Al-Dzariyat: 19 “and their wealth and possessions (was remembered) the right of the (needy)..” Act as a mechanism to distribute wealth Purify one’s heart and self from being stingy Al-Taubah: 103 “Of their goods take alms. That so thou mightiest purify and sanctify them..”

27. 1. Islam. 2. Wise. 3. Genuinely owned-owner’s asset or asset free of claims by others. 4. Productive assets -capable of generating profit or revenue and net cash inflows:Cash in hand,Cash at bank,Stocks, shares, bonds, and securities,Inventories of finished goods, Rentals, Net Receivables. 5. Surplus assets- its value must equal to or above a minimum zakat-able(nisab). 6. Full year’s possession (Haul). 7. Fullfil the nisab- a given quantity for the period of an entire year. CONDITIONS FOR ZAKAT

28. 28 People Eligible to pay Zakat  Muslim  Independent  Absolute ownership  Nisab  Haul  Purpose of business

29. 1. The Needy/ Poor/Fakir / Fuqara’ - Income is less than 50 percent of daily needs. 2. Miskin (Masakin) - Just sufficient to finance basic needs. 3. Amil - The one with authority / responsible to collect zakat. 4. Muallaf - Individual who convert to become Islam. 5. Fisabilillah - Individual involve with activities to defend and strengthen Islam. 6. Ibnu Sabil - Refugees, homeless, Orphanage Muslim. 7. Gharmin - Suffered many debt and unable to settle them. 8. Riqab – Slave, after release from the owner. People Entitle to Receive Zakat / Benefeciaries of Zakat

30.  Some states in Malaysia have only 7 beneficiaries since nowadays there are no more slaves (captives).  However, there are other states which still maintain the number of beneficiaries of 8 people.  The reason - because it is stated in the Holy Quran that there are 8 beneficiaries of zakat.  Due to that, ar-riqab is implied as zakat for those who would like to free themselves from ignorance for instance zakat paid to people who would like to further their studies Discussions on the ISSUES: Are there 8 or 7 Benefeciaries???

31. Zakat for them who really need your help

32. Needy In hardship

33. Help them who really need

34. Help them who cannot afford the basics

35. Help the orphans

36. Nisab value Gold 87.48g (84.7g – Shafi’i) Silver 612.36g (592.9g – Shafi’i)

37. The Rate of Zakat to be paid 1/40 th of the wealth or 2.5%

38. This charity is obligatory upon every free Muslim, a sane person and an adult

39. Other charities, beyond the obligatory charity Beyond and over this obligatory charity Zakat, everyone who can afford voluntary charity is encouraged to give it. Fulfilling these duties with strong faith in Allah and in excellence are very important part of achieving Taqwa.

40. Zakat Rules أحكام الزكاة Muslim Scholars have summarized Zakat Rules as follow : - Zakat is a obligatory from Allah. - Zakat is a Financial Worship. - Zakat is a Believe. - Zakat is Compulsory to Muslims. - Zakat is Due to an assigned Receivers.

41. Zakat must be given from halal source - - Zakatable wealth is gained from Good and Halal Sources, but Tax to the Government may come from both Halal & Non- Halal Sources.

42. In the Quran “ Zakat are for the Poor, and the Needly, and Those Employed to administer the funds, for those whose hearts have been recently reconciled to Truth, for those in Bondage and in Debt, In the cause of Allah, and the Wayfarer, Ordained by Allah, and Allah is full of knowledge and Wisdom. “ ( Al Tawbah -60 )

43. Help people privately Help just to please Allah Never expect any return Never feel proud of your ability Help people with respect Honour everyone Poorer people have got share in your money

44. Share your joy and happiness with others! InshaAllha Allah will return you in many folds. Be happy when others are happy!