Top 5 Most Popular FAQs
Zakat Matters
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| A person who does not pay zakat has destroyed one of the pillars of Islam. Just as those who can afford to pay zakat gives it out to those who need it most and at the same time causing a sense of respect and care among the two classes of the community, refusal to do so will also cause some conflict or a feeling of hatred amongst the community. Allah s.w.t has ordained that the rich give out a very small portion of what they have every year to the poor and needy and this group will always be hoping to receive what they are entitled for. The rich must be grateful to Allah .s.w.t for the rizq and wealth that Allah s.w.t has bestowed on them by paying zakat. Refusal to do so is akin to taking away the rights of the poor and needy and taking away a person's rights is definitely something that will cause hatred in the hearts of those that have been oppressed and will incur the wrath of Allah s.w.t.
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| Currently, Zakat on Insurance is only applicable for Insurance in the form of savings endowment - where the intention is to grow the wealth in savings. Hence for your situation, there is no Zakat for all 3 of your insurance plans.
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| Zakat is the third pillar of Islam and Hajj is the fifth pillar of Islam. It is compulsory for one to give out zakat when one's property or savings have reached haul and nisab, irregardless of whether it is savings meant for one's daily expenses or for retirement or for other religious practices including Hajj. Zakat purifies one's wealth and self. Allah has promised that He will help expand the wealth of those who give out zakat. It is also important to know that a Mabrur Hajj only comes from a purified source and performing Hajj is only compulsory for those who can afford it. Affordability here means in terms of financial expenses for the Hajj itself and one's dependents that will be left behind.
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| Interest monies are considered syubhah and cannot be used for personal expenses. Therefore, it is not permissible to be used to pay one's zakat obligation.
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| Zakat on Savings is based on 2.5% of the lowest savings balance in a haul which is 355 Gregorian calendar days. This period of 355 days is different for each individual and does not have to be from pay day to pay day, Ramadan to Ramadan, or Jan to Dec. If for example your haul is from Feb to Jan the following year, the Zakat will be based on 2.5% of the lowest balance that you have from Feb to Jan. The haul is determined by the nisab value. If in one year, your savings balance does not fall below the nisab value, then you have the haul in existence. If at any point in time your savings balance drops below the nisab, there is no haul. So for some people, they do not have to pay Zakat as their haul is always broken and never completes a full Hijrah year. The nisab value, which is used to determine if there is a haul, is the nisab value at the end of the 355 days period.
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