27 September, 2008

ISLAMIC QUESTIONS ON ZAKAT AND FINANCE

Answered by: Dr. Monzer Kahf
Profession Scholar in Islamic Economics & Financial Expert
Subject Zakatul-Fitr & Ramadan Financial Issues
Date Sunday,Sep 21 ,2008
Time Makkah From... 13:40...To... 15:20 GMT From... 10:40...To...12:20

All praise and thanks are due to Allah, and peace and blessings be upon His Messenger.
Brothers and sisters, the session has already started. You can submit your questions. Please, make your questions short and clear so as to help us answer all your questions.
Yours, Islam Online Fatwa Editing Desk.


Name Anon -
Profession
Question Every year I give donations for mosque and Zakah. I haven't been claiming the income tax receipts. But for the last couple of years I have been claiming the income tax receipts for lillah (for sake of Allah) and Zakah. The money that I'm getting back on the donated portion; I have been giving it back to the mosque as lillah. Is this action appropriate, please advise.
Answer In the Name of Allah, Most Gracious, Most Merciful.
All praise and thanks are due to Allah, and peace and blessings be upon His Messenger. Dear brother Anon, it is always appropriate to give as much donation (Sadaqah) as one can and even a little more! It is never inappropriate to give the saved amount of taxes to charity. Whether this saving comes from claiming the donations and Zakah given to an Islamic charity or religious organization that is tax exempt. But please make your giving for the sake of Allah alone and give then as much as you can. There is no moral, religious or legal obligation that one should give to a charity the amount one saves on taxes as a result of claiming previous donations as tax deductibles.
Allah Almighty knows best.


Name Heba -
Profession
Question Is Zakah to be paid yearly for 12 months salary or one month and what is the percentage?
Answer In the Name of Allah, Most Gracious, Most Merciful.
All praise and thanks are due to Allah, and peace and blessings be upon His Messenger. Dear sister Heba, Zakah is on the savings not on the total salary. Once you own a small amount that is called Nisab, then whatever you save will be added and after 12 lunar month from the day you had a Nisab for the first time, you owe Zakah on the total balance that you have at the rate of 2.5%, then you repeat the same one full lunar year (354 days) later and each year then after. The amount of Nisab is approximately US$ 1500 (originally it considered in gold or silver, that is 452 grams of silver or 85 grams of gold). BTW, Zakah should be given to the poor and needy either directly if you know and can or through Islamic charitable organizations.
Allah Almighty knows best.


Name Ahmad -
Profession
Question We are building one primarily to serve the rural poor in Bangladesh. We will take funds from privileged people to help maintain the clinic, medication costs, nurse/doctor/'s salary, etc. We will not refuse care to privileged persons as their money will be used to allow us to provide free healthcare to the poor. Can we use Zakah money to build the clinic?
Answer In the Name of Allah, Most Gracious, Most Merciful.
All praise and thanks are due to Allah, and peace and blessings be upon His Messenger. Dear brother Ahmed, my answer is absolutely NO. Zakah Money should be given to the poor and needy in such a way that the recipient becomes the OWNER of what she/he is given. You cannot use it to build a clinic, school or mosque even if these building are to be used by the poor only. Building such institutions is necessary in Bangladesh rural areas and every where in the Muslim countries, this must be financed from donations and contributions of Muslim rich persons. This is a kind of Fard Kifayah (a personal assigned obligation on all those who can contribute but once the objective is satisfied those who did not give yet are relieved from this obligation). But when you use Zakah for such buildings you are actually charging it to the poor alone (who should not be contributing to financing these buildings to begin with) because Zakah is the right of the poor in the exact sense of the word.
Allah Almighty knows best.


Name Shah -
Profession
Question Is it preferable to pay Zakat Al-Fitr in cash or in kind as done by the Prophet (peace and blessings be upon him)?
Answer In the Name of Allah, Most Gracious, Most Merciful.
All praise and thanks are due to Allah, and peace and blessings be upon His Messenger. Dear brother Shah, if the poor and needy who are targeted by it can use it in kind as was done at the time of the prophet (peace and blessings be upon him) that is better, but if the poor and needy cannot use it in kind and they go immediately to sell it because they need other kinds of food items or to satisfy other pressing needs it is then better to give it in cash, this is why Ibn Taymiyah, one of the great Muslim scholars of the Nineth century of Hijra said that it is better to give it the way that makes it more beneficial to the recipient poor.
Allah Almighty knows best.


Name fathima -
Profession
Question As-Salamu `alaikum! 1. Can Zakah be paid to grandparents? 2. Should Zakah be given to Zakah committee or can we give it among our poor relatives? Thank you.
Answer Wa `alaykum As-Salamu wa Rahmatullahi wa Barakatuh.
In the Name of Allah, Most Gracious, Most Merciful.
All praise and thanks are due to Allah, and peace and blessings be upon His Messenger. Dear sister Fathima, if you can give it to poor relative who really are in need, that is better because that will give you double reward being a payment of Zakah and at the same time a kindness to kin. Of that does not include parents, grandparent or children and grand children because you are personally responsible to spend on these relatives as you spend on yourself, they are your own financial responsibility. But if you don't have needy relatives or you cannot really determine their needs, it may then become better to give it to some specialized committee in the community or neighbourhood.
Allah Almighty knows best.


Name Pearl - Pakistan
Profession
Question Is it allowed to give Fitra (Zakat Al-Fitr) for the fiancee when Nikah hasn't executed yet instead of her own parents to do so, for her respect and with love?
Answer In the Name of Allah, Most Gracious, Most Merciful.
All praise and thanks are due to Allah, and peace and blessings be upon His Messenger. Dear pearl, I wouldn't recommend it. Zakah in general is money that cleans one's property and one's heart, so is Zakah of al Fitr (Fitra), I wouldn't suggest that you like to give it to would-soon-be your wife. You don't like to give her your dirty linen would you? Give her instead a gift to her and to her parents and give your Fitra (Zakat Al-Fitr) to some deserving stranger, it is a small amount anyway!
Allah Almighty knows best.


Name Hosam -
Profession
Question Can I send Zakat Al-Fitr to another country other than the country I am living in? I may do that a few days before Eid which means that the money may not reach the people in the other country before Eid Al-Fitr. Is this ok?
Answer In the Name of Allah, Most Gracious, Most Merciful.
All praise and thanks are due to Allah, and peace and blessings be upon His Messenger. Dear brother Hosam, yes, it is permissible to send Zakat Al-Fitr to another country if the need is more or if you give it to a needy relative living in another country. We are in the age of internet, it can reach anywhere in the world in seconds! This means it is your responsibility as a payer to make it reach its recipient before Eid day. Many Muslim charities pledge to do that if you give it through them now.
Allah Almighty knows best.


Name Ansar - India
Profession S/w Engineer
Question As-Salamu `alaykum. I happen to take a loan to buy property/ house. But lately I came to know that borrowing money on interest basis is also a sin. Will this way of acquiring property make it a haram for me?
Answer Wa `alaykum As-Salamu wa Rahmatullahi wa Barakatuh.
In the Name of Allah, Most Gracious, Most Merciful.
All praise and thanks are due to Allah, and peace and blessings be upon His Messenger. Dear brother Ansar, essentially, YES, but now you need to look forward, then do your best to pay the interest loan as soon as you can. I should also mention that the Fiqh Academy of India gave an opinion that it is permissible to use such interest-based mortgages for buying a residence for those who need it because of the necessity and need that touches a large number of persons.
Allah Almighty knows best.


Name Mazin -
Profession
Question These days, the US and the capitalist system in the world is passing through a touch time and the core of the capitalist theory seems to be collapsing? Is there is a solution in Islam for this dilemma?
Answer In the Name of Allah, Most Gracious, Most Merciful.
All praise and thanks are due to Allah, and peace and blessings be upon His Messenger. Dear Br. Mazin, essentially YES. But it is a total prescription not a partial one. What is needed is not only avoiding interest and interest-based transactions but also taking a moral position toward consumption, production and fairness.
Allah Almighty knows best.


Name Shifaaa -
Profession
Question How much should one pay as zakat Al-Fitr this year? can i pay it on behalf of my mother?
Answer In the Name of Allah, Most Gracious, Most Merciful.
All praise and thanks are due to Allah, and peace and blessings be upon His Messenger. Dear sister Shifaa, the amount of Zakat Al-Fitr in cash depends on prices in your country and the main food staple in your land. I can give you this amount now in America, it is about 6 US Dollars per person. What you need to take is the price of 2.25 Kilo gram of wheat, barley, rice or date whichever of these or the like that is considered a main food staple in the country.
Allah Almighty knows best.

In the Name of Allah, Most Gracious, Most Merciful. All praise and thanks are due to Allah, and peace and blessings be upon His Messenger.
Brothers and sisters, we are so sorry for not answering all your questions because the time is over. We apologize for any inconvenience. Do keep in touch. Join us in coming sessions.

Islam Online Fatwa Editing Desk.



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