Zaqaat (complete information)

In the name of Allah who is most Gracious most merciful

Zakat
Zakaat is one of the five pil­lars of Islam.'Zakaat literally means to increase. Technically it means to purify one's position of wealth by distribut­ing a prescribed amount which has to be given to the poor as a fundamental Ibaadat. Zakaat is not a governmental tax, but its main purpose is to keep those who are wealthy clean monetarily from sins.
Zakaat was made compulsory at Makkah at the same time as Salaat. This can be seen in the Surahs of the Qur'aan where the laws of Zakaat are men­tioned. The amount, distribution, etc. was defined at Madinah in the second year Hijri.
Allah says in the Surah Baqarah: 276
"Allah destroys wealth obtained from interest and will give increase for deed of charity."
Hadith #1
"The nation that does not give Zakaat, Allah will bring about a drought on them (i.e. neces­sities of life will become scarce."
Hadith#2
"The person on whom Allah has bestowed wealth, and he does not give Zakaat, on the day of Qiyaamah, his wealth will be turned into a venomous bald serpent which will wind around his neck and bite his jaws and say: "I am your wealth, I am your treasure."

Bukhari.

The Zakaat wil privode a shelter on the Day of Judgement;
It contributes to Barkat in wealth.It saves from fear and grief.
Allah says in the Qur'aan:
"And there are those who hoard gold and silver and  do not spend it in the way of Allah, announce to them a most grievous penalty (when) on the Day of Qiyaamah heat will be produced out of that wealth in the fire of Jahannam, then with it they will be branded on their foreheads and their flanks and backs.

On which zaqat farz

 Zakaat is  Farz upon a Muslim owns wealth intended for trading to the value
of Nisaab .The wealth should be: Fully owned by him; In excess of his personal needs (clothing, household furniture, utensils and cars etc. are termed as articles of personal use .
Of a productive nature from which he can derive profit or benefit such as merchandise for business, gold, silver, livestock, etc.
There is no Zakaat on effects if these are in excess of one's needs, such as cars, utensils, furniture etc. if such items are not intended for trade.
Zakaat is Farz on gold and silver, be it in the form of bullion, jewellery, cash, bank notes, utensils or any other form, the Nisaab value of these should be equal to the amount which is shown under rate.
If the gold possessed is not equal to the value of 87,48 grams, or silver possessed is not equal to the value of 612,36 grams, but the value of both combined is equal to the value of either the Nissab of gold or silver, then Zakaat will be Farz.
In the event of an article not being of pure gold or pure silver, but containing a mixture of other metals and the gold or silver is more than the other metal, it will be regarded as gold or silver and Zakaat on this will be Farz. But in this case where the metal is of greater quantity than either the gold or silver, Zakaat will not be Fraz on the article.
If a person has 620 grams of silver which is more than the Nisaab and before a whole year has elapsed he acquires 50 grams of gold which is less than the Nisaab, then the value of this gold must be added to the value of the silver, and thereafter the Nisaab reckoned. The two must not be reckoned separately, as this will be a cause of avoiding Zakaat.
Zakaat is Farz on merchandise for business, equal to the value of Nisaab. Zakaat is Farz on livestock ,on the income of properties
is equal to the value of Nisaab.
Zakaat is Farz on the income derived from a hiring business, such as crockery, motor cars, vans, trucks etc

Nisaab

The amount of wealth which makes one liable for Zakaat is called Nisaab.
The payment of Zakaat is compulsory on the excess wealth or effects which is equal to/or exceeds the value of Nisaab, and which is possessed for a full Islamic year. If such wealth decreases during the course of the year, and it increases again to the value of Nisaab before the end of the year, the Zakaat then must be calculated on the full amount that is possessed at the end of the year.
The rate of Zakaat is 2.5%
The owner must have possession of animals for one lunar year before Zakaat becomes Fardh.
The Nisaab when Zakaat becomes applicable is forty goats which are more than twelve months old. There is no Zakaat if the number is less than forty.
The Nisaab when Zakaat becomes applicable is thirty cattle and water buffaloes. There is no Zakaat if the number is less than thirty.
Thereafter, in every thirty animals, one, 1 year old animal should be given; and in every forty, a 2 year old animal should be given as Zakaat.
If a loan is not cash, gold, silver or merchan­dise but is per­sonal effects sold old clothes, house-hold items etc. or is a property which was sold and the value of it is that of Nisaab, then it is called a Mutawassit loan. Thus Zakaat for those year prior to payment will not be Farz
If this loan is equal to or in excess of Nissab and is fully recovered after several years, then Zakaat on that amount is not Farz for all the past years. However, if anyone in such an instance gave Zakaat, then such an act is rewarded by Allah Ta'aala.
In a case where the repayment is made in installments, then Zakaat will only be Farz if the repayment is equal to Nisaab and is retained for a full Islamic Year.
If the installment received is less than Nisaab, but one is in possession of . Nisaab on which a year has elapsed, then this installment must be added to the wealth, and Zakaat must be given on the total. It is not necessary for a year to pass over this installment that is received.
If money owing to one, is not in lieu of cash, gold, silver, merchandise or personal effects or property which is sold; but is due to outstand­ing inheritance, bequests, Meh'r (dowry) salary etc., then it is called a Dha'eef loan.
Zakaat will become Farz when these monies are received and they-are equal to or in excess of Nisaab, and further they are retained for a full Islamic year. There is no Zakaat for the years that have passed before receiving these amounts.

On which zaqat not farz

There is no Zakaat on Provident and Pension funds. Zakaat must only be paid on these amounts after they are received from such funds provided the amount is equal to or in excess of the Nisaab and is retained for a full Islamic year.
1. Articles that are purchased for resale are referred to as merchandise. The Nisaab for Zakaat on merchandise is Ijne same as that for cash, i.e. if the value of the articles is equiva­lent to the value of 87.48 grams of gold (7.5 tolas = 1350 grains = 2.8125 troy.
ounces or 612,36 grams of silver 62.5 tolas = 9450 grains = 19.6875 troy ounces, or more that it will be Fardh to give Zakaat at the rate of 2.5% or one fortieth.
Zakaat should be given on the capital that exists at the end of the lunar year, which includes the profit, e.g. at the beginning of the year the capital is R2000-00. When the year ends a profit of R500-00 is shown. Zakaat must be given on R2500-00.
If a bad debt is recovered and it is equal to or exceeds the Nisaab, then Zakaat on all the past years must be given.
If one has various different types of merchan­dise then the total value of all the goods should be calculated. If it is equal to or exceeds the value of Nisaab then it will be necessary to give Zakaat.
If at the beginning of the year one has the full Nisaab and during the year the amount decreases and by the end of the year posses­sion of the full Nisaab is regained then it will be Waajib to give Zakaat on this amount.
If one mixes Halaal and Haraam merchandise and the amount is equal to or exceeds the Nisaab at the end of the year then it will be necessary to give Zakaat.
It is customary to write the price paid for the merchandise at stock figure. Zakaat should not be calculated on these stock figures. For Zakaat purposes current purchase value of the merchandise should be calculated.
If a few persons are partners in a company and if any one share of the partners is equal to or exceeds Nisaab then it will be necessary for that partner to give Zakaat.
Stock for Zakaat purposes must be calculated according to the Islamic (lunar) year.
Zakaat is Farz at the ruling price on shares hela in a company at the end of every Islamic year. As machinery, land, fixtures and fittings, furni­ture, buildings etc. are exempt from Zakaat, one is allowed to subtract these from the total assets. This could be obtained from the com­pany's annual report, for example if one has shares worth R100-0C ai id the machinery, land etc, are worth 5% of the total assets of the company, then deduct R5-00 for machinery.
When Zakaat is given on a capital amount once, and thereafter if this same amount remains with the owner till the following year then Zakaat will be due again. Zakaat will be Farz repeatedly after every Islamic year has elapsed.
If Zakaat on wealth has not been given at the end of the Islamic year, and all that wealth either gets lost or stolen, then such wealth is exempted from Zakaat. If one deliberately gives away or destroys his wealth then Zakaat still remains Waajib.
If after a full Islamic year has elapsed, and inci­dentally without the niyyat of Zakaat, one gives away all his wealth to charity, then that amount of wealth is exempted from Zakaat. In case where he only gives away part of that wealth, then Zakaat will be due on the remain­der if it is equal to Nisaab.