What do we do if the nisab rate fluctuates before our zakat anniversary date?

Q: A year ago, I passed the nisab and I took note of the date and nisab amount. Before my zakah due date, I fell below that recorded nisab, but by then the current nisab had also fallen below what I possesed (so I have less than the nisab of the very first day I became […]

Read more...

Is a mentally disabled person exempt from paying zakat?

Q: I have a query regarding whether my mother has to pay zakah on her wealth. My mother has been diagnosed with vascular dementia and the assessments by mental health professionals have concluded that she lacks mental capacity to manage her personal and financial affairs. I have applied and have been successful in being granted the […]

Read more...

Can someone stuck in a ribā-based loan give voluntary charity, or do they need to pay off the ribā-based loan first?

 Q: Can someone stuck in a riba-based loan give voluntary charity, or do they need to pay off the riba-based loan first, given that is a duty, and thereafter resume with giving voluntary charitable donations? الجواب حامدا ومصليا ومسلما ومنه الصدق والصواب   A: One who has taken a haram loan or a conventional mortgage should […]

Read more...

Can student loans be taken off as a liability for zakah purposes?

Q: Can student loans be taken off as a liability for zakāh purposes?  Is a Student Loan added to ones zakāh liability section as a whole in every zakāh year until it is paid off unlike most deferred payment loans such as mortgages, where only the coming 12 months instalments will be added in the […]

Read more...

How did the Al Qalam panel decide the limit given to National Zakat Foundation caseworkers?

Q: How did the Al-Qalam Shariah Panel decide the limit (10%) that is given to caseworkers, who are involved with administering Zakat according to the National Zakat Foundation? A:  الجواب حامدا ومصليا ومسلما ومنه الصدق والصواب The limit of 10% is a not a shar’i limit. Rather, it is intended to ensure that zakat funds are […]

Read more...

Is it permissible to take a business loan which requires payment of an insurance premium?

Hawkesbay Investment Corporation Limited The business is in conformity with standards and in line with normal  corporate ethics. Based on the loans agreement   drafted by our client and we guarantee that our client will only enter into a legitimate  business transaction as proposed with the funds. Legal & General Insurance  company  hereby  guarantee the safety […]

Read more...

How does the proposed Shari’ah compliant student finance Takaful model work?

The proposed Takaful model is based on the principle of mutual co-operation and guarantee. Whilst a conventional loan contract requires the applicant to pay interest on the amount borrowed, the Takaful contract requires the applicant to make a unilateral promise to make future charitable donations in exchange for the Takaful fund paying for the applicants […]

Read more...

Can we deduct the deposit due (e.g. for purchase of a house) and stamp duty from zakat calculation?

Q: 1. Before the start of Ramadhan, we agreed on the purchase of a house from Al-Rayan Bank. The property price has already been agreed and the solicitors are already involved with paperwork Insha’Allah to go through soon. I have money in my bank account but of course I am also liable to pay to the […]

Read more...

Can Zakat ul Fitr only be distributed in the form of food?

Q: Is it permissible for Zakat ul Fitr to be given in the form of cash or new clothes, or must it be spent on food?  الجواب حامدا ومصليا ومنه الصدق والصواب A: Zakatul Fitr can be given in the form of cash or new clothes and does not have to be spent on food.  […]

Read more...

Is it necessary for Zakat to be allocated and spent within 1 year of receiving the donation?

Q: What is the time-period for dispensing Zakat? Is it necessary for Zakat to be allocated and spent within 1 year of receiving the donation? الجواب حامدا ومصليا ومسلما ومنه الصدق والصواب A: Zakat should be distributed as soon as possible.  If there are procedural delays in the PROPER discharge of zakat which includes proprietary […]

Read more...