Name Department Class Teacher D-of-Sub Nabeel Sami Political science 1st Year (BS) Miss Sumera Ishrat
and loose a knot from my tongue. In capitalistic economy. Islam perhaps offers that system. The most dominant economic systems of the world in the present century are capitalism and socialism. “…… O My Lord! Relieve my mind. and writings of classical Muslim jurists. the profit motive constitutes the prime stimulus to productive exertion and the price mechanism determines what things shall be made and in what quantities and what conditions. Chief features of socialism. competition and institution of interest. That they may understand what I say” –(Al-Qur’an 20:25-28). abolishes private property and claims to achieve economic equality.” Ahadith have been taken from standard translations of various Ahadith compilations particularly from Al-Hadith of Maulana Fazlul Karim. Both capitalism and socialism are secular systems and their aim is the same i. centrally planned economy. And ease my task for me. in brief. distribution and exchange. verses of the Qur’an. Thus the economic crisis of our age remains as deep and disturbing as ever. Ahadith of Prophet Muhammad (PBUH). Through in-depth study and intensive research. and establishment of totalitarian state under dictatorship of proletariat. In this book a sketch of the Islamic Economic System is being presented which has been prepared in the light of the Islamic teachings. analysed and classified under various subjects. The arrangement of these subjects follows the conventional style of a textbook on economics with a view to make it communicable to the readers of modern economics. profit motive. Socialism. unrestricted private ownership. conventions of prophet’s companions and right-guided caliphs. my Lord! Increase me in knowledge” so that I may be able to do some more valuable services to Islam. Capitalism is based on the private ownership of the means of production. include: existence of unrestricted economic freedom. the achievement of material well -being of their followers although the methods adopted by them for achieving this end are diametrically opposed. distribution and exchange. include state ownership of means of production. Teachings of Islam on economic matters are widely scattered in the Holy Qur’an.e. free market. and views of classical jurists on economic matters have been collected. the Merciful. humanity is anxiously looking forward to a system which could deliver it from the present economic mess created by the dominant economic philosophies of the modern age. Before concluding I must pray to Allah “O. on the contrary. believes in the public or state ownership of means of production. the Beneficent. Interestingly both capitalism and socialism have failed in resolving principal economic problems of humankind. Translation of the Verses of the Qur’an has been taken from Marmaduke Pickthall’s renowned translation “The Meaning of the Glorious Qur’an. All the aspects of the economic system of Islam have been discussed in detail in the light of the Verses of the Qur’an and Traditions of Prophet Muhammad (PBUH). It suppresses economic freedom. non-existence of private property. -2-
. in brief.INTRODUCTION
In the Name of Allah. In this situation of despair and despondency. Thus chief features of capitalism. books of Ahadith.
1 Funding Of Schools & Hospitals 9 10 11 12 13
4 5 5 6
Bait-ul-Mal Difference B/W Zakat & Fitra Reference Conclusion
1.2 1.# Description Page No.8 2 Categories Obligatory Voluntary Minimums And Amounts Eight Categories Of Individuals May Receive The Zakat Ineligible Recipient Zakat In Sufism Schedule of Zakat
1.3 1 1.6 1.7 1.4 1.1 1.2 Root Of Word Sunan Al-Fitrah 8
It is the only tax sanctioned to the state according to Islamic law or sharia. Muslims see this process also as a way of purifying themselves from their greed and selfishness and also safeguarding future business.the prayers of those who do not pay
.. Every year they give 2. Zakāt is sometimes referred to as sadaqah and its plural. etc. such as gold and silver. however. although others may have a rightful share. Similar differences exist for business assets and women's jewelry. Some scholars consider all agricultural products zakatable. sadaqat. earnings of trade and other business enterprises and what is drawn from beneath the earth (natural resources). Zakatable refers to assets subject to zakat according to Islamic examples and directives. However. ". The Qur'an does not provide the definition of zakatable wealth nor does it provide the required percentages in zakat. Zakat has been paired with such a high sense of righteousness that it is often placed on the same level of importance as offering Salat. one of the Five Pillars of Islam. Muslims fulfill this religious obligation by giving a fixed percentage of their surplus wealth. Some consider debts zakatable.5 percent of their wealth away to the poor. the kinds of wealth that are zakatable. others restrict zakat to specific kinds only. who is sane. Some scholars consider the wealth of children and insane individuals zakatable. sometimes "Zakāh/Zekat") or "alms giving". Zakat or sadaqah is worship as means of spiritual purification. which may include rate. smiling at someone. The same kind of differences also exist about the disbursement of zakat. the exemptions. Zakat purifies the person who receives it because it saves him from the humiliation of begging and prevents him from envying the rich. It is often compared to the system of tithing and alms. Generally the sharing of wealth is called zakat. who is free. Its importance and centrality to Islam results in the "punishment" for not paying when able being very severe. Muslim jurists differ on the details of zakat.ZAKAT
(Arabic: زكاةIPA: [zækæh]. by example or by directives. It is the duty of an Islamic community not just to collect zakat but to distribute it fairly as well. that the Qur'an mentions a few kinds of zakatable possessions. It is left to Sunnah to give. whereas the sadqat could mean the sharing of wealth as well sharing of happiness among God's creation. generally to the poor and needy. Muslim jurists agree that zakat is obligatory on the Muslim who has reached puberty. nisab throughout Islamic history. Some require certain minimum nisab for zakatability. In the 2nd edition of the Encyclopedia of Islam it states. crops and fruits.. such as saying kind words. taking care of animals or environments. It must be realized. denying Zakat equals denying the Islamic faith. is the giving of a small percentage of one's possessions (surplus wealth) to charity. but it serves principally as the welfare contribution to poor and deprived Muslims.  In addition. and who owns the minimum assigned.
zakat will not be accepted".
Donation to build mosques and Schools 2. Exempt from Zakat are a person's house and personal transportation.
4.5%) of the wealth. most Muslims pay 2.3
1. 1/40 (2.440 lb) of crops.1
There are two categories of charities in Islam . Zakat on commercial assets such as inventories. It is an obligation on Muslims to pay 1/40 (2. Sura Al-An'am Most Muslims calculate and pay their Zakat at the end of the lunar year as said above.5%) of goods used for trade.. for a full
5. Zakat al-fitr (fast-breaking zakah)
1. in fact it
goes so far to say that there is no specific amount or rate. and fixed capital 4. It is not written anywhere in the Qur'an that the faithful must give a specific amount. Zakat on mining and fishing
9.5% of their income as is specified in the books of Muhammad al-Bukhari and Muslim ibn al-Hajjaj. Zakat on cash or its equivalent such as bonds.0 oz) of silver. 3. Zakat on gold. The Qur'an specifies that Zakat should be paid upon receipt of income in the passage : 7. but render the dues that are proper on the day that the harvest is gathered.4
3. plants (factory)..eat of their fruit in their season. Zakat is not mandatory on harvest if the total did not reach the minimum limit (nisāb) of about
653 kg (1. . Zakat on livestock 6. silver currency and jewellery 2. shares of joint companies etc.obligatory and voluntary
. 5.0 oz) of gold or less than 595 g (21. 6. work in process etc. In some communities this is frowned upon.
—Qur'an 6:141 . Helping non-Muslim
1. and 5% or 10% of certain type of harvests depending on irrigation. which they have had. Zakat on honey and animal products 8. Almsgiving on self. Zakat on rented buildings. However.2
1. nor on gold amounts if the owner has less than 85 g (3.1. Zakat on agriculture 'Ushr 7.
so simple were his needs and possessions that he never qualified for the nisab due to him donating most of his earnings on a daily basis. schools and similar projects (usually developed countries) 4. In the way of Allah .7
While Zakat plays a large role in the Muslim religion. Those in debt (Muslims or non-Muslims) . Zekah can be used for construction or maintenance of mosques and schools
1. but they are not allowed to receive what others are able to give due to their "greater spiritual wealth".
1.Al Ghaarimeen 7. Extremely poor (Muslims or non-Muslims) . It must be noted that the Muhammad lived his life at this level.Ar-Riqaab 6. "classic Sufi sources portray the Sufi as standing outside the system of Zakat". Those whose hearts are to be won .
. Wayfarer (Muslims or non-Muslims). Descendants of the family of Muhammad 2.Fi sabil Allah 8. In places where Muslims are financially capable of entertaining such projects as construction or maintenance of mosques.Ibnus-Sabeel
As a general rule.Fuqara' 2.Al-Masakin 3.Aamileen 4.1. Those who do not give money are either poor or will go to prison. To free the captives . burial or payment of debts 3. On behalf of a deceased person for shrouding. This is because a traditional Sufi will own no property and therefore they will pay no Zakat. Now this places them in a class with the poor who are allowed to receive the benefits of Zakat. In places where Muslims are financially weak (Third World). The needy (Muslims or non-Muslim). the recipient must be a living Muslim who does not possess wealth equal or an excess of a prescribed threshold amount nisab.5
1.Muallafatul Quloob 5.6
The following recipients are not eligible to receive the obligatory due (Zekat) 1. Those employed to collect .
shaving the pubic hair and cleaning one's private parts with water. The fitrah of the human body is its beauty and perfection as created by God. plucking the eyebrows. or filing down the teeth. human beings are born with an innate knowledge of tawhid. using the tooth-stick. such as clothes. bathing. rather than changing it. humans are permitted to enhance their appearance through means approved by God. wearing wigs or hairpieces. 'to knead and shape dough'. "customs of nature") are a collection of hygienic or cosmetic practices enjoined by Muhammad as consistent with fitrah: 'A'isha reported: Muhammad said: Ten are the acts according to fitra: clipping the moustache. e. but not to one's essential fitrah. "No child is born except on Al-fitra (Islam) and then his parents make him Jewish. cutting the nails. ‘nature’. were specifically discouraged or forbidden by Muhammad as contrary to fitrah.. ‘constitution’. It is for this reason that some muslims prefer to refer to those who embrace Islam as reverts rather than converts.g. In a mystical context. tattooing. Narrated Abu-Huraira: Allah's Apostle said. it can connote intuition or insight. as it is believed they are returning to a pure state.)فطرةis an Arabic word meaning ‘disposition’. Although created perfectly by God.
1. (Sahih Muslim.1 • • •
To split or cleave Implies opening up and coming out Verb means 'to bring forth'.502)  Certain other practices. washing the finger joints. These are changes to surface appearance. snuffing water in the nose. or fitrah (Ar. and perfumes. The narrator said: I have forgotten the tenth.FITRA
. ihsan and all other attributes that embody what it is to be human. Procedures to remove or hide deformities resulting from disease or injury are seen as restoring fitrah. According to Islamic theology. Christian or Magian (Zoroastrian). letting the beard grow. The sunan al-fitrah (lit. 'to originate'. or ‘instinct’. However. but it may have been rinsing the mouth. which is encapsulated in the fitra along with intelligence. and are therefore allowed. as an animal produces a perfect young animal: do you see any part of its body amputated?"
1. The perfect embodiment of fitra was Abraham and Muhammad. plucking the hair under the armpits. II.2
Fitrah has a physical component as well as a spiritual one. . radical changes to one's body to suit personal taste or social fashion are condemned as unlawful changes to fitrah.
It is conceptually similar to the common law trust.10 -
.) The term waqf literally means detention. chemists.وقفpronounced [wæqf].أوقافawqāf. The legal meaning of Waqf according to Imam Abu Hanifa is the detention of specific thing in the ownership of waqif and the devoting of its profit or products "in charity of poors or other good objects". mattresses. pharmacists. hospital equipment such as beds. The Prophet said. the number of Bimaristan hospitals multiplied throughout Islamic lands. make the property inalienable. Waqf means the permanent dedication by a Muslim of any property for any purpose recognized by the
1. ophthalmologists.Khitab got land in khyber. In the 11th century. including the wages of doctors. in such a manner that its profits may revert to or be applied "for the benefit of Mankind". Umer-Ibn-Al. and
(A waqf (Arabic: . Imam Abu Yusuf and Imam Muhammad Says: Waqf signifies the extinction of the waqf's ownership in the thing dedicated and detention of all the thing in the implied ownership of God. surgeons. if you like. every Islamic city had at least several hospitals. and give the profit from it to charity. There is no direct injunction of the Quran regarding Waqf. so he came to the prophet Muhammad(PBUH) and asked him to advice him about it. but there is a Ahadees which says "Ibn Umar reported. plural Arabic: . the purchase of foods and medicines. The waqf trust institutions funded the hospitals for various expenses. bowls and perfumes.1
After the Islamic waqf law and madrassah foundations were firmly established by the 10th century. domestics and all other staff. typically denoting a building or plot of land for Muslim religious or charitable purposes. Turkish: vakıf) is an inalienable religious endowment in Islam.
managing personal finances and government expenditures. whereas at provincial level the Bait-ul-Mal was controlled by the governor of the province.repairs to buildings. It served as a royal treasury for the caliphs and sultans. helped the poor and performed almost similar functions which the ministry of finance performs today. “Every property which belongs to Muslims in general and not to any Muslim in particular constitutes a part of the assets of the public treasury (Bait-ul-Mal). it is considered to have been made by it. It appears that all the requirements and needs of the government and the society used to be met by Bait-ul-Mal which supervised public revenues and public expenditure. as envisaged by early Muslims who founded it. It is better to explain the concept of Bait-ul-Mal. the second caliph of Islam. it was a financial institution responsible for the administration of taxes. Since the revenues falling under the second and third category are no longer available to a modern Islamic state. and their revenues covered various expenses such as their maintenance and the payment of teachers and students. They are : 1. because the conception of Bait-ul-Mal refers to the destination of the property. In addition to that. It is not necessary that the property should be actually in the vaults (hirz) of the treasury for it to be considered an asset of the treasury. it also performed the . The Zakat and Sadaqat revenues can be applied to the heads of expenditure as prescribed by the Qur’an (in its verse 60 of chapter 9) which relate mainly to the welfare of the poor. not to its actual location. before we proceed to dilate upon sources of its income and heads of its expenses." Historically. the ‘Zakat’ and ‘Sadaqah’ revenues. Further. whether or not it has actually been paid out of the vaults of Bait-ul-Mal. the same would be substituted by the modern taxes. 2. Modern Islamic economists deem the institutional framework appropriate for contemporary Islamic societies. subject to the regulations governing the same”. and therefore. A full-fledged proper organisation of Bait-ul-Mal existed during the Muslim rule right from the time of Umar Farooq. The revenues which accrue to the Bait-ul-Mal of the Islamic state have been placed by the classical jurists of Islam under three categories. Central Bait-ul-Mal existed at the capital of the empire under the direct control of the caliph. civil administration. every expenditure which must be incurred in the interests of the Muslims in general is a liability of Bait-ul-Mal and when it is made. transport and communication. it administered distributions of zakah revenues for public works. defence.11 -
. 3. economic development. The above mentioned classes of revenue are maintained distinctly under separate heads or titles by the Baitul-Mal as the items of expenditure to which they can be allocated are different in Shariah.
Bait ul-mal is an Arabic term that is translated as "House of money" or "House of Wealth. the ‘ganimah’ revenue or spoils of war. this is for the reason that a revenue which has gone into the hands of the public collectors or has been directly spent by them is really a part of the income and expenditure of the Bait-ul-Mal itself. education and health and social action programme. Therefore. the ‘fai’ revenues such as Jizyah and Kharaj. The waqf trusts also funded medical schools. whereas other revenues are spended by the Islamic state at its discretion to fulfil its multifarious responsibilities such as establishment of law and justice.
and control of credit and interest rates which are modern devices.
.functions of a central bank except issue of currency.12 -
it has not stipulated time.DIFFERENCE
DIFFERENCE BETWEEN ZAKAT FITRAH AND ZAKAT ON WEALTH
Aim on every person Paid within stipulated time Amount is low and all Muslims are required to pay the same amount
Zakat on Wealth
Aim on wealth No stipulated time Dependent on the amount of wealth the giver has
1 in Islam the fitrah is an important financial duty. The amount is low and all the Muslims are required to pay the same amount.
. For most purposes this involves the payment each year of two and a half percent of one's capital.
1 in Islam the zakat is an important financial duty. 2 3 Zakat can give any month of the year. Its main aim is to financially support to those people who are poor and do not have proper money to spend their Eid. 2 3 It is obligatory and it starts in the month of Ramadan and finishes before the starting of Eid prayer.13 -
. Each Muslim calculates his or her own Zakat individually. Its main aim is to financially support to those people who are poor and do not have proper way to live their life. If anyone could not give
full amount of fitrah he can give half amount also but it is obligatory on all the Muslims.
Zakat on IslamCity. The Hans Wehr Dictionary of Modern Written Arabic 2.رررر رررررر ررررررر 4. A Concise Introduction. Aghnides: Muhammadan Theories of Finance. Imam Ali. Umer Chapra: Islam and the Economic Challenge. University of Pennsylvania Law Review 136 (4): 1231– 1261 2. Gaudiosi. 1401) p. Roshdi (1996).com 5. 1999 3. ISBN 0415124107
. 2 (Beirut: Dãr al-Fikr. Encyclopedia of the History of Arabic Science. M. Routledge. Régis. ررررر ررر رررر. Sahih. Cowan (1994). ISBN 1-85941-729-9 3.M.REFERENCES
1. Islam. Neal. Letters & Sayings of Imam Ali Al-Kulayni. Curzon Press. 104
1. 3. John Esposito (2003).
2. Yusuf al Qardawi Author introduction Explanatory Issues page xix 2. I).
Quoted by M. Hudson. A. Nicolos P. Fiqh al Zakah (Vol. (April 1988). Dr. Morelon. al-Usul mina ‘l-Kãfi.). J.رررررررر رررررر . Islamic Legal Interpretation: Muftis and Their Fatwas 4. Masud (1996). 13.
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1. p. Richmond. Monica M. 2. (2003). Nahjul Balagha: Sermons.