Ramadhaan – A Date with Dr Zakir

Lesson – 19

Zakaah
[Part – 3]

(Duration: 50 minutes)

Yusuf Chambers: Dear brothers and sisters in Islam and Humanity,

Assalaamu Alaikum Wa Rahmatullahi Wa Barakatuhu, may the peace,
the mercy and the blessings of Allah Subhanahu Wa Ta’ala be on all of
you. Welcome to the show ‘Ramadhaan - A Date with Dr Zakir’, I am
your host, Yusuf Chambers, today we are answering your questions on
the topic ‘Zakaat’.

Assalamu Alaikum, Dr Zakir.

Dr Zakir Naik: Wa Alaikum Assalaam Wa Rahmatullahi Wa Barakatuhu

Yusuf Chambers: Well, we’ve got a huge number of questions on this

topic probably more on this topic than any other that I have ever seen.
So, let me grab the trustee clipboard and get stuck in. Dr Zakir, the first
question we have from one of the viewers is, bear with me because quite
a few of these are quite technical I am sure you know all about them
anyway, but some people claim that Zakaat on wealth, if above Nisaab
has to be paid only once in a lifetime. If you’ve paid Zakaat on a
particular wealth or gold, you don’t have to pay it again next year. Is
there a difference of opinion in this matter?

Dr Zakir Naik: Alhamdulillah Was Salaatu Was Salaam Ala Rasoolillah

Wa Ala Aalihi Wa Ashaabihi Wa Ajma’een. Amma Ba’ad

A’uzu Billahi Minash Shaytan Nirrajeem, Bismillah Hirrahman

Nirraheem,

Rabbish Rahli Sadri Wa Yassir Li 'Amri Wa Ahlul `Uqdatan Min Lisani

Yafqahu Qawli

As far as regarding the question is there a difference of opinion as far

as Zakaat should be paid once in a lifetime or it should be paid every
year. In the past 1400 years right from the time of the Sahabas till the
Salafus-Saliheeh, till date never has there been any scholar, any Fuqaha

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who has ever said that Zakaat should be paid only once in a lifetime.
You read the Qur’an, you read the Hadith, the saying of the Prophet,
never will you find any Hadith, any Qur’anic verse, any scholar that has
ever said that Zakaat should be paid only once, there in no difference
of opinion what so ever.

Lately, just a few years back this issue has come to the picture and I
was there in Chennai a few years back and this same question was asked
to me which originated from Chennai, that’s South India where this
question was asked and there was a local person who had raised this
issue. And there is ample of evidence from the Hadith that Zakaat should
be paid every year. And there is no question of difference of opinion and
I don’t know how this controversy came up.

If you read the Hadith of Muhammad Sallallahu Alaihi Wasallam, its

mentioned in Sunan Abu Dawud volume no. 2 Book of Zakaat, Hadith
no. 1568, the beloved Prophet Muhammad Sallallahu Alaihi Wasallam
said that:

“If you have 200 Dirhams and if you possess it for a period of 1 year
then you have to pay 5 Dirhams.”

That means 2½%, 1/40th of it. And there is no Zakaat on gold if you
have less than 20 Dinaar.

Now here it says you have to pay Zakaat, if you possess it for one full
complete year. There is no mention that you have to give once in
lifetime. It indicates that if you possess for 2 years you have to pay
twice, if you possess for 3 years you have to pay thrice, it’s understood.
If anyone says that it has to be given once in lifetime there should be
proof in the Qur’an and the Hadith which states clearly.

And there are various other Hadith which clarifies this issue. If you read
the Hadith of Sunan Abu Dawud volume no. 2 Book of Zakaat, Hadith
no. 1577, the beloved Prophet Muhammad Sallallahu Alaihi Wasallam
said that:

“Anyone who has 3 signs has sane belief, the one who worships only
Allah Subhanahu Wa Ta’ala, who says there is no God worthy of worship
except Allah Subhanahu Wa Ta’ala and one who pays Zakaat on his
property agreeably every year.”

So here the statement is clearly mentioned every year. That means

Zakaat should be paid every year, so there is no difference of opinion at

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all and it’s an authentic Hadith. And furthermore, there are various
references that can be given that can easily disprove this point that it
should be given only once in a lifetime. There’s a Hadith mentioned in
Sahih Bukhari volume no. 2 in the Book of Zakaat, Hadith no. 1402, you
know some people argue that Zakaat should not be paid on livestock
etc. etc..

This Hadith of Sahih Bukhari volume no. 2 in the Book of Zakaat, Hadith
no. 1402 it says that:

“Muhammad Sallallahu Alaihi Wasallam said, that the animals, the

livestock, the camels, they will appear on the day of Resurrection in the
healthiest form that they have been in the world. And will go to their
master, to the owner and if he has not paid Zakaat, they will tread them
under their feet…..

and the Hadith continues…

that the sheep they will appear in the healthiest form they have been in
this world and if their owner has not paid Zakaat, they will buck them
with their horn and will trample them beneath their hoof.”

Indicating that Zakaat should be given on the animals.

Further, if you read the Hadith of Hazrat Abu Bakr (may Allah be pleased
with him), its mentioned in Sahih Bukhari volume no. 2 in the Book of
Zakaat, Hadith no. 1399 and Hadith no. 1400:

“There were some Arabs who did not want to give Zakaat and they
revolted. So Hazrat Abu Bakr (may Allah be pleased with him), he said
that he will wage a war against these people. Hazrat Umar (may Allah
be pleased with him) said that ‘But the messenger of Allah said that
those who believe in Allah Subhanahu Wa Ta’ala and don’t worship
anyone else and those who say ‘la ila ha ill Allah Muhammadur
Rasoolullah’ we should not wage a war against them’ So Hazrat Abu
Bakr (may Allah be pleased with him) said that ‘Anyone who breaks the
law, he will wage a war against them and anyone who differentiates
between Salaah and Zakaat that both are compulsory, he will wage a
war against them’ and by Allah he says that ‘Anyone who used to give
a she kid or a lamb at the time of the Prophet and now is reluctant to
give or does not give that Zakaat, which he did at the time of the
Prophet’, he will wage a war against them.”

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Indicating that though Zakaat was given last year, this year too it had
to be given and if they did not give Hazrat Abu Bakr (may Allah be
pleased with him), he would wage a war against them.

And Hazrat Umar (may Allah be pleased with him) says that Allah
Subhanahu Wa Ta’ala had opened the heart of Hazrat Abu Bakr and
what he said was right. Indicating that Zakaat has to be given every
year.

Furthermore, there are various Hadith how Zakaat used to be collected

and there is a Hadith, it’s mentioned in Sahih Bukhari volume no. 2 in
the Book of Zakaat, Hadith no. 1454:

“Where a person says that, he was appointed by Hazrat Abu Bakr (may
Allah be pleased with him) to collect Zakaat, and he said that the
Messenger of Allah Subhanahu Wa Ta’ala said how Zakaat should be
collected. And he goes on saying that, if it’s a camel if the number is 5
then you have to give one sheep as Zakaat, and the number keeps on
increasing and the Zakaat keeps on increasing. If its 40 sheep, if anyone
has a flock of 40 sheep, he should give one sheep as Zakaat. Anywhere
between the number of 40 to 120 the Zakaat is one sheep. If the number
of sheep between 120 and 200, 2 sheep have to be given for Zakaat. If
it’s between 200 and 300, 3 sheep have to be given and for every 100
extra, one sheep has to be given. Now when the collector of Zakaat went
to collect the Zakaat, they used to count the livestock, they used to
count the head of the cattle. They never looked for how many new cattle
have you got, how many new were born, they counted all the cattle
available there.”

That means, they even took Zakaat on the cattle that were paid earlier.
They didn’t say okay, this was already last year you gave so I will not
count that, please give me the number that you have purchased lately
or the new kids that have been born or they used to look out for any
goat or any sheep which is one year old, that wasn’t the case.

So, this clearly proves that Zakaat has to be given every year and it
should be given as long as he possesses the wealth for a period of one
year and if the Nisaab is above the level then he should pay every year.
And this idea that it should be given once in a lifetime is a new idea
which was never heard before, it just came few years back, it’s unheard
of in the past 1400 years. So, there is no difference of opinion
whatsoever. Whichever group of Fuqaha, whatever they are, all of them
agree that Zakaat should be paid every year.

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Yusuf Chambers: That clears that up! Alhamdulillah. Question 2, is it
essential to inform a person that he is being given from Zakaat?

Dr Zakir Naik: It’s not compulsory that you should inform the person
whom you are giving Zakaat that, this is from Zakaat money. As long
as you are sure that the person who you are giving to comes under one
of the 8 categories in the Qur’an, Fuqara, Masakeen, which we discussed
last time. If he falls under one of the categories, its not compulsory that
you have to mention it’s from Zakaat. If there is a doubt that he may
not fall in the category then making inquiry is a must, but otherwise in
a general case it’s not compulsory you have to mention that this money
is from Zakaat.

Yusuf Chambers: Question no. 3, how should Zakaat be paid on land,

is it sufficient to pay Zakaat on it once, for a number of years when it is
sold?

Dr Zakir Naik: If any land is purchased for the purpose of selling, for
doing business then Zakaat should be paid 2.5% of the value of the land
every year. So, once you possess the land and 1 year passes then you
have to pay 2.5% of the current value. So whichever date you have
chosen to calculate the Zakaat, it should not be on the price at which
you purchased, the price may go up of land, the price may go down. So,
whatever is the present value of the land that you possess, the moment
one year is completed after you have acquired it, you have to pay Zakaat
2.5% on it.

And suppose you have a land for several years and you have to pay
every year from whatever other wealth you have, but if you don’t have
any other wealth and it’s the only land that you have, and you are unable
to pay the Zakaat, meaning every year is the best. But if you are unable
to pay, if you don’t possess any other wealth that time as a last resort
which is not recommended, but as a last resort if you don’t have any
money then you can delay the paying of Zakaat till the time you sell it.
And when you sell it, if you possess the land for 5 years and you haven’t
paid Zakaat, so when you sell it, you have to pay 5 x 2.5. But you have
to note down the value of the land every year. So, first year the value
may be ‘X’, second year it may be ‘Y’, third may be ‘Z’, so note down
the value every year and you have to give 2.5% of that value, that year
and you have to add up 2.5% each year, add up the 5 years and then
that amount you have to give after you sell the land. But the best is to
give it as soon as possible.

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Yusuf Chambers: Thank you Dr Zakir. The next question, question no.
4, some people invest in real estate because they don’t want to invest
in banks but they claim that the Zakaat on such wealth has to be paid
only on its rent and not on its original value. What is your observation
on this issue?

Dr Zakir Naik: As far as the view of the majority of the scholars is

concerned, what they say that, if the land has been purchased for selling
so that you make a profit then all the scholars unanimously agree that
Zakaat should be given on it. As we discussed in the last answer that
the moment one year is completed the land that you purchased, Zakaat
has to be paid on it. But if you have land and if you give it on rent,
means if you buy a house and give it on rent, majority of the scholars
say that Zakaat is not applicable on the value of the house. Zakaat is
only applicable on the rent you receive, the moment you receive the
rent and if it stays with you for a period of 1 year and if it’s above the
Nisaab level then you have to pay Zakaat on the rent, not on the value
of the house, the flat or the land.

But now a days most of the people that purchase land for investment,
they give it on rent. So here we had a dilemma that people who purchase
land, mainly the purpose is investment but if they think that they’ll buy
the land, they’ll sell after 4-5 years when the price rises, so but natural,
they don’t want to keep it vacant so they keep it on rent to a person
who requires to stay in that flat.

Now what will happen, should we pay Zakaat or not? So here there is a
difference of opinion, here scholars differ. Some scholars say that fine
pay only Zakaat on the rent, if you possess for more than one year if
it’s above the Nisaab level and when you sell it on that day only you pay
the 2½% on the total value of the land. But there are some scholars
who are very strict and who disagree with this view. And they say that
if you buy a land, even if you give it on rent, the cost of the land, the
market value of that land, of that flat should be paid every Hijri year.

Scholars like Ibn Aqeel, they say this, Ibn ul Arbi, Ibn Aqeel who is a
Hambali, Ibn ul Arbi who is a Malaki, Shaikh Abu Zohra who is a Hanafi,
Abdul Rahman Al Hassan, Shaikh Abdul Waaf Khalaf who is presently
very great scholar, Shaikh Yusuf Al Qardawi and scholars of the same
group, they say that if a person buys and has many flats on rent then
he should even pay Zakaat on the cost of that flat or of that land.

But for example, if a person is a poor person and doesn’t have any
income, doesn’t have any business and he has only 1 house which he is

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living in and second house which he gives on rent so unanimously people
agree that the rent he acquires, if his saving is more than the Nisaab
level but there are many rich people who are land lords and who possess
many houses, many flats which they give on rent, they own large
properties and if we agree with the view of the majority of the scholars
that Zakaat should be only paid on the rent.

Suppose a person has 100 flats, costing hundreds of thousands of

Dollars. And the rent that he gets, he utilizes what he requires for his
personal expenses and before 1 year is over after he gets the rent, he
buys another few flat. So, and if he doesn’t have any gold jewelry that
means he will not pay Zakaat at all. After the 100 flats become 110,
120, 140 maybe he is the richest man in the city of Bombay or any city,
he may own half the property of the city, half the land in the city. So, if
you agree that Zakaat should not be paid, he may be a multi-millionaire,
may own half the city, he may own ¾th of the city, he takes rent, when
he gets the rent before it becomes 1 year, he utilizes what he wants
then he buys new land. And if Zakaat is not there on land which is given
on rent, he will keep on getting richer and richer and richer without
paying a single Dollar as Zakaat.

So therefore, I agree more with the minority group of scholars like Ibn
ul Arbi, Ibn Aqeel, Shaikh Abu Zohra, Shaikh Yusuf Qardawi and the
likes of these scholars who say that, if a person possesses large amount
of land and many houses giving on rent then Zakaat should be even
paid on the cost price of the land of the flat. Whatever is the present
value of that land or of that house, he has to pay 2.5% Zakaat every
Hijri year. And I agree more with these types of scholars.

And anyway, even if it’s not required and if a person pays extra Allah
won’t question you. Surely you will get Sawab for that even if you give
as Sadaqah, you will get Sawab. So, I always agree when in doubt leave
it out and go on the side which will give you more Sawab because
minimum is 2½% Zakaat, if you pay more, Allah will yet be happy.

Yusuf Chambers: Sounds reasonable to me. Question 5, there are

many rich Muslims who build huge houses, more than they require,
there is no Zakaat on a house in which a person lives if his house was
smaller, the money saved could be liable for Zakaat but because they
build huge houses, they get exempted from Zakaat. Kindly comment.

Dr Zakir Naik: Again, in this issue too there is a same difference of

opinion. Normal ruling is that what is the basic necessity, the shelter,
the house which you require protection from the prying eyes, protection

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from heat, cold, rain, it is a basic necessity and the house in which you
live is not liable for Zakaat, there is no difference of opinion. But in such
cases as the questioner has asked that he has a mansion, a person who
may be having a wife and 3-4 children may require 2 rooms, 3 rooms,
5 rooms, 6 rooms, how many? But if he has a mansion, which may be
equivalent to 10 houses, then should he pay Zakaat or not? So, again
most of the scholars, they say that the house in which you live is not
liable for Zakaat but it will fall under the category of Israaf.

As Allah says in the Qur’an in Surah Israa chapter no. 17 verse no. 26
and 27 that:

“Be not a spend thrift, be not extravagant. For verily a person who is a
spend thrift is a brother of the devil.”

Allah says in Surah Furqaan chapter no. 25 verse no. 67 that:

“These are the believers who are neither miser, niggardly neither they
are extravagant, they follow a middle path.”

So, extravagance is Haram in Islam. So having such mansions is totally

prohibited, people say its Haram, people say its Maqrooh whatever it is,
but yet because they are living in it most of the scholars say Zakaat will
need not be paid.

But again, the same group of scholars Ibn Aqueel, Ibn ul Arbi, Shakh
Abu Zohra, Shaikh Abdul Waaf Khalaf, Shaikh Abdul Rahman, Abdul
Rahman Al Hassan, Shaikh Yusuf Al Qardawi these group of scholars
they say that if a person has a mansion, which is much more than what
the basic requirements, multiple times more, then its an excess wealth.
And I agree with the questioner that he could have bought 10 houses
and lived in one, so on 9 houses there would have been Zakaat. Since
he’s excessively rich these group of scholars say that Zakaat should be
paid even on that house. A person who owns many houses also he
should pay Zakaat on this. And I agree with that view and even if it’s
not liable the person is so rich so even, if he gives 2.5%, it will be better
for him it will be a protection for him on the day of Judgment. So, I am
of the view that these people should pay Zakaat on the house.

Yusuf Chambers: Thank you very much, Dr Zakir. Next question from
another viewer. Some Muslims are extremely rich and have several huge
companies and factories and such like. Should Zakaat be paid on
complete assets that the person owns or only on its goods that it’s
required?

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Dr Zakir Naik: Again, the same difference of opinion. The normal ruling
is that you pay Zakaat on the merchandize and goods of trade what you
buy and sell but the place where your business is, it’s free from Zakaat.
You may have vehicle which you use for transportation, its free from
Zakaat but only on the goods in merchandize you pay Zakaat. But this
example is again of a very rich Muslim who has many companies, many
factories, may be costing millions of Dollars, should he pay Zakaat only
on the goods or on the full assets?

Again, the same group of scholars say that since he is excessively rich
and the company is very big. And normally what rich people do that they
have one company, whatever profit they get, no one stores it in the
house, you won’t keep it in the lock and key, you won’t buy gold and
keep it, he will buy one more factory, that’s an investment. So a person
who has few factories, who makes millions of Dollars a month, the
moment he gets it, within a few months he may invests and he opens
one more factory, then he earns more, then he opens one more factory.
So, if he has to pay only on the goods, the goods per se, the stock, will
be a very small amount but the cost of the factory will run into hundreds
and millions of Dollars. So, I agree again with the same group of scholars
who say that, if a person owns many factories, so Zakaat should be paid
on the complete asset of the factory including the land.

Our beloved Prophet Muhammad Sallallahu Alaihi Wasallam further said,

its mentioned in Sahih Bukhari volume no. 7 (Book of Patience) Hadith
no. 5672, the Prophet said that:

“A person will be rewarded for everything that he spends except what

he spends in making buildings.”

You know also making buildings and all these big things. And further its
mentioned in Sahih Bukhari volume no. 4 (Book of Jizyah) Hadith no.
3185 beloved Prophet Muhammad Sallallahu Alaihi Wasallam said that:

“I am not worried about my Ummah as far as poverty is concerned but

I am more worried about my Ummah as far as prosperity is concerned
because previously many people were destroyed because of luxury and
they used to compete with one another. So, I am worried about my
Ummah because of luxury and they’ll compete with one another and as
the earlier people were destroyed, they too will be destroyed.”

Muhammad Sallallahu Alaihi Wasallam was worried about these things

about luxury, having big-big mansions, having big-big factories and just

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to get on common terms, when the question is asked that when you buy
shares, you know, stock market, Halal stock, Halal shares, of a company
which is Halal. And you ask any scholar that you buy the shares, do you
have to pay Zakaat, they’ll say yes. Whatever is the value of the share
NAV - Net Asset Value, you have to pay Zakaat on it.

So, when you buy shares of the company, the share cost is equivalent
to the complete asset, it is not only on the goods. So, when you buy
shares from the stock market of a company and then you are paying
the full Zakaat of the share value. If a person owns a company
completely that means, he is a 100% shareholder. So there when you
buy 1%, 2% of the shares you are paying complete amount on that 1%
that includes the land, cost everything. So here, why when you own it
completely you only pay on the goods? So here agreed it becomes a
difference. So, in shares as you have to pay on the net asset value, I
believe even in the company you have to pay for the complete net asset
value and In Sha Allah that will increase the wealth of that rich man and
will purify his wealth, InshaAllah.

So, the best thing is that as Allah says in Surah Taubah chapter no. 9
verse no. 34 and 35 that:

“Hoard not gold and silver, there are people who hoard gold and silver
and spend it not in the way of Allah Subhanahu Wa Ta’ala, and give not
Zakaat on it, announce to them a grievous penalty where heat will be
produced from the fire of hell, from the wealth they possess and they
will be branded with it on their head, on their flanks, on their back and
it will be told to them that taste ye the wealth which you hoarded.”

So therefore, I am of the opinion that Zakaat should be given even if

it’s a big mansion even though you are living in it give Zakaat, if you
have multiple houses, give Zakaat. If you own land even may be on
rent, give Zakaat on it. If you own factories, give Zakaat. As a general
rule if the person is really very rich, really very rich, he should give
Zakaat on everything and I know that the basic necessities you should
not give Zakaat but it’s safe for their Aakhirah that he gives Zakaat on
the possession, on the factory, everything so that it is safe and he’s free
from the fire of hell.

Yusuf Chambers: Thank you Dr Zakir for that. A sister does not have
any wealth apart from jewelry, should she sell some of it, in order to
pay the Zakaat on it?

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Dr Zakir Naik: As far as the jewelry she has, and if it’s gold and if it is
above the Nisaab level, 85 grams of gold or above it, then Zakaat is
compulsory. If it’s silver, it should be 595 grams of silver or above it. If
it’s more than the Nisaab level, Zakaat is compulsory on it. Zakaat can
be paid even from the other wealth that she has or from the jewelry
itself. If she has other wealth and she pays Zakaat, every year she has
to pay 2½% of the value of the gold or silver. If she doesn’t have, any
of her relative also can pay on her behalf. Whether it be father, mother,
brother, no problem, he can pay. But if she doesn’t have any wealth and
no relatives then she will have to sell part of her jewelry, she will have
to sell 2.5% of that jewelry and give Zakaat, its compulsory should be
given every year.

Yusuf Chambers: Ok. Thank you. The next question is, if every year
2.5% Zakaat on savings or jewelry is given, is paid, after 40 years there
would be nothing remaining, is this a trick question?

Dr Zakir Naik: Ha..ha..ha… many people think that if you keep on

giving 2½% Zakaat. So, 2½ multiplied by 40 becomes 100%, so to give
2½% every year then at the end of 40 years you will be left with nothing.
Actually, their Maths is a bit weak because Zakaat is given on what they
have for one full year.

So, if for example, someone has may be 30 grams of gold so he has to

pay Zakaat for the 1st year 2½% i.e., 2½ grams of gold. Next year he
has to pay 2½% on 97½ grams not on 100 grams, so which will be less
than 2½ grams of gold. So, it will take much more than 20 years and
the full asset can never be nil, it can never be, even if hundreds and
hundreds and hundreds of years pass, it will never be nil, it will keep on
diminishing, something will be left but again the moment it reaches a
Nisaab level, just after a few years and the lady gives 2½% may be
about for a few years, may be 5 years, 10 years, 15 years. Within a few
years from 5 to 10 years, it will reach a Nisaab level, the moment it goes
below 85 grams of gold, which will take somewhere close to about 10
years odd or little bit more, moment it reaches below the Nisaab level,
then you stop paying Zakaat.

Or if a person earns a thousand grams of gold, he keeps on giving but

the moment he reaches Nisaab, they stop giving gold so never can it be
zero. Even practically they keep on giving even below Nisaab it will not
reach zero. But the moment it reaches Nisaab according to Islamic
Shariah, they don’t have to give Zakaat, so that’s the reason
Alhamdulillah, this tax is levied every lunar year.

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Yusuf Chambers: JazakAllah Khair for your answer. Next question, are
diamonds exempted from Zakaat?

Dr Zakir Naik: As far as diamonds and other precious stones are

concerned ruby, pearl, safire it’s a unanimous agreement amongst all
the scholars that Zakaat need not be given on these precious stones,
including diamonds. But if it’s used for trade, for buying and selling then
but natural, it should be paid once every year whatever stock you have,
if you are using it for selling. But if it’s used as an ornament, you know,
the precious stone, Zakaat is not liable but if there is a mixture of jewelry
gold and diamond together then if that amount of gold reaches the
Nisaab level then Zakaat is due on that but on the diamond on the other
precious stones it’s not liable.

But again nowadays, many people they purchase diamonds as an

investment you know because even the value of diamonds increases.
So, if its bought with the Niyyah of investment, there are certain
Fuqahas who say that if its for investment that the Niyat is there, that
their intention is for that and to gain profit then Zakaat should be paid
on diamond. If it’s only for normal use, for personal use and not for
investment then Zakaat is not liable on diamond and other precious
stones.

Yusuf Chambers: JazakAllah Khair! Thank you, Dr Zakir for that. The
next question we have from yet another viewer, how should Zakaat be
paid on commercial goods? Should it be based on the price for which it
was bought or the price for which they are to be sold?

Dr Zakir Naik: As far as a person who buys any article for his use then
but natural, whatever he buys, whatever the cost is, we have to take
out the depreciation and pay Zakaat on that amount depending on what
it is. If its land it may appreciate, it may go down, if it’s a machinery
then depreciation. But this question is mainly for goods for trade that a
person who buys some goods for selling, so should he pay at the price
at which he bought it or at the price at which he is going to sell? Here
again the scholars differ.

According to Shaikh Saleh Al Munajjid, he says that if you buy certain

goods for selling, if you are a wholesaler then take Zakaat on the price
of wholesale, that your’e going to sell. If, you are a retailer then you
take out Zakaat on the price that which you are going to sell on retail.
And if you are doing both then take a rough estimate and then take out
Zakaat. But some of the scholars, they say that in retail the profit margin
is quite a lot depending upon the good you are dealing with. If you are

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dealing with may be buying and selling books, the profit margin of books
is 40%, 50%, 60% also. So imagine if someone has large shop of books
or a chain of bookstores and if he purchases worth may be 100,000
Dollars worth of books and he sells the selling price may be more than
200,000 dollars. So, for him to pay Zakaat on the selling price would be
too much. So, I agree more with those scholars who say that whatever
is the cost, once you buy it since its with you, you haven’t made the
profit yet, so the cost price for you, for that book is the cost at which
you brought it, at the discounted cost. So, if you give 50% discount, so
whatever you bought it that you pay Zakaat when you sell it, then you
get 50% profit, or may be many a times the books aren’t sold, so you
have to keep a sale and then sell the book at 40% discount. Sometimes
you have to sell it at a loss, you purchase at 50% discount, you sell at
60% discount. And especially you take out the books which are there
lying with you for may be 5 years or 6 years or 8 years, so imagine you
pay 8 years Zakaat on the higher side and then you sell it at a discounted
rate. So, I agree more with those group of scholars who say that you
pay a Zakaat on what you actually paid and then if the cost price
increases…

For example, you buy good for 100 dollars or 100 rupees then you give
50% discount, so you are buying capacity is 50 rupees or 50 dollars.
Suppose the price the MRP - the maximum retail price, increases to 110
Rupees or 110 Dollars then you calculate 50% discount, 55 rupees. That
time you can increase the price but not at the selling price. You don’t
know whether you are going to sell at the full price or a discounted price
or whatever it is, therefore I agree more with what is the cost or discount
you get, add it to the present cost and that’s how you have to make out
what is the total value of your goods after possessing it for one year and
then pay Zakaat, 2½% on it.

Yusuf Chambers: Okay great, great, thank you. Next question, is there
any Zakaat on rental cars and vehicles that companies own for moving
produce?

Dr Zakir Naik: As far as possessing vehicles which are given on rent,

the same view is used as houses on rent, the same thing. So, majority
of the scholars say that if its vehicle given on rent, no Zakaat is there
on that vehicle. Fine, if it’s a taxi driver who is a poor person who has
one taxi and his earnings is just a few 100 Dollars a month or a few
thousand rupees a month but natural, if he pays Zakaat on the cost of
the vehicle, on the taxi, it will be too much for him.

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So I agree that there should be no Zakaat on the cost of the vehicle.
But on the other hand, if you have a person who owns a fleet of cars
may be a thousand cars, you know, we have Hertz and these big-big
companies who own thousands of cars, now for them that itself becomes
an asset, you know, they give on rent and they keep on buying every
few months, hundreds and thousands of cars. So I believe that if it’s a
fleet of cars and if it is given on rent then the cost price, the depreciated
cost price, don’t take the cost at which you have bought the car, take
the depreciated cost, every year keep on taking out depreciation but
give it at that value, you give 2½% Zakaat, that will be preferable. So
I agree more with those same group of scholars Shaikh Qardawi, Ibn
Aqueel, Ibn ul Arbi, Shaikh Abu Zohra, Abdur Rahman Al Hassan and all
these group of scholars.

Yusuf Chambers: Next question, another viewer, there are many

Muslims who haven’t paid Zakaat for years, now if they choose to
repent, do they have to pay Zakaat for previous years. If yes, then how
do they calculate the Zakaat since they haven’t got a ready record for
the number of years and then amount etc. and the details?

Dr Zakir Naik: As we discussed a few days earlier Ramadhaan – the

month of Repentance, there are some criteria for repentance. If you
have done something wrong, agree it is wrong, stop it immediately,
don’t do it in future and if you can undo it. So, if you know not paying
Zakaat is wrong, agree it is wrong, not paying Zakaat, stop it that means
stop not paying Zakaat, that means start paying Zakaat, see to it that
you don’t stop paying Zakaat, keep on continue paying Zakaat and you
can undo it. Undo it means, you have to pay Zakaat because that
belongs to the poor people, the 8 categories of people. So, you are
depriving them of their wealth, which is rightfully theirs. So, if you have
not paid Zakaat for a few years and now you have realized that you
have to pay Zakaat, so you have to roughly calculate what was the
amount of Zakaat they had to pay each year.

So, if you haven’t paid for 5 years, roughly calculate, if you can exactly,
if you know, what was your saving and what was your asset then
calculate exactly. If you cannot then whatever you can do best of your
ability so that your conscious is clear, go back whether it’s 5 years, 10
years, 15 years, give 2½% of the each year’s asset you had, the saving
you had and give it as soon as possible, the sooner you do it, the better
it is. That is the best way of repenting and In Sha Allah, Allah will
increase your wealth.

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Yusuf Chambers: JazakAllah Khair, Dr Zakir, next question. Another
viewer wants to know, will the Zakaat of a person be accepted if he
gives it to an ineligible person by mistake?

Dr Zakir Naik: If a person gives Zakaat to an ineligible person by

mistake, surely Allah Subhanahu Wa Ta’ala, as Allah says in the Qur’an:

“He does not catch the servants of Allah if they err and if they forget.”

So, by mistake then In Sha Allah it may be forgiven. And there is a

Hadith mentioned in Sahih Bukhari volume no. 2 in the Book of Zakaat,
Hadith no. 1421 that:

“Once a person went out to give alms and he unknowingly gave the alms
to a thief. Next day, the people started speaking that he gave alms to a
thief so he said “O Praise be to Allah, I will give charity again”. So, he
again goes out and unknowingly he gives charity to an adulteress. So
next day again people start talking “O he gave charity to an adulteress”
so he says “O Praise be to Allah, I will give charity again”. So
unknowingly, the third time when he goes out to give charity, he gives
it to a rich person, again people start talking “O he has given charity to
a rich person” so he says “O Praise be to Allah” and he is asking Allah
Subhanahu Wa Ta’ala, that he made a mistake. So, there is a person
who comes and tells him that In Sha Allah your charity will be accepted.
You may never know, you gave charity to a thief, to an adulteress and
to a rich person, you may never know, your charity may prevent the
thief from robbing and he may come on the straight path. You may
never know the charity you have given to an adulteress; she may stop
doing adultery, she may stop doing sexual intercourse and may come
on a straight path. You may never know the charity you gave to a rich
person; may kindle in the heart of a rich person that he will spend his
wealth in the way of Allah Subhanahu Wa Ta’ala.”

So again, based on this Hadith that the Niyyah was good. So, if a person
makes a mistake and he gives Zakaat to a person who is not eligible, as
long as he tried his best to find out the truth he makes a mistake In Sha
Allah, Allah will accept his Zakaat. But, if he is in doubt, he should make
an enquiry but by mistake if he gives then In Sha Allah, Allah will not
hold him responsible and his Zakaat will be accepted.

Yusuf Chambers: Excellent, thank you! Next question, what is the

ruling on a person who asks for Zakaat, but does not fall into the
category of its recipients?

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Dr Zakir Naik: If a person who is not eligible to receive Zakaat and he
asks Zakaat, the person who knows about it, he should not give him
Zakaat. Just because he is asking, if you know very well that he doesn’t
fall in the category if he tells a lie and you don’t know anything and you
give by mistake, Allah will accept your Zakaat. But if you know, not only
should you not give but you should also warn him that it’s a great sin.

As our beloved Prophet Muhammad Sallallahu Alaihi Wasallam, its

mentioned in Sahih Bukhari volume no. 2 in the Book of Zakaat, Hadith
no. 1474, the beloved Prophet said that:

“Anyone who keeps on asking from people to increase his wealth, on

the Day of Resurrection his face will be without any flesh.”

Our beloved Prophet Muhammad Sallallahu Alaihi Wasallam, also

repeated in another Hadith, it’s a Hadith of Sahih Muslim volume no. 2
in the Book of Zakaat, Hadith no. 2266 where the beloved Prophet said:

“Anyone who asks from people in order to increase his own wealth
actually asks live coals of fire for himself and it will not benefit him in
the Aakhirah.”

There are several such Hadith, there is one more Hadith which is
mentioned in Sahih Muslim volume no. 2 in the Book of Zakaat, Hadith
no. 2255:

“ Where a person comes and he begs from the Messenger of Allah. And
the Messenger of Allah gives him some charity. Again, he comes and he
begs again the Prophet Muhammad Sallallahu Alaihi Wasallam gives him
charity. Again for the third time he begs, again the Prophet gives him
charity and tells him that ‘A person who begs, if he does with a clean
heart it will benefit him but if he does it veraciously, it is like a green
ripe fruit.’ The property is green and sweet, if a person begs with a
correct intention, it will be good for him but if a person begs with a
veracious mind, it will be a loss for him. And it is like a person who eats
and he is never satisfied and the Prophet said the upper hand is better
than the lower hand.”

And the messenger of Allah also repeats another Hadith in Sunan Abu
Dawud volume no. 2 Book of Zakaat, Hadith no. 1629 that:

“During the farewell pilgrimage when the Prophet was distributing

Zakaat, two young and robust men, they came and they asked that
‘Please give us Sadaqah, please give us Zakaat.’ The Prophet looked at

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them and he said that ‘There is no Zakaat for a rich man and a person
who is healthy.”

That means they should work. They have got good healthy body, Allah
has given them that means they should work unless what they work and
they are not able to earn enough salary for their basic needs then it’s a
different question. So based on this Hadith we realize that a person who
is not liable for Zakaat should not have Zakaat, and a person knows
about it he should stop him from asking Zakaat.

Yusuf Chambers: Okay. Thank you, Dr Zakir and the last question
today Dr Zakir on the topic Zakaah is, what is the different between
Sadaqah and Zakaat?

Dr Zakir Naik: By definition Zakaat means to purify, to increase, it

means goodness, it means blessings. And Sadaqah comes from the root
word ‘Sidq’, which means sincerity. So it is sincerity in faith of Allah
Subhanahu Wa Ta’ala.

Zakaat by definition according to Islamic Shariah, it is an obligatory

charity which every Muslim who owns more than the Nisaab level or
surplus wealth, if he has it with him for a year’s period, he has to give
2.5% on it every year.

As far a Sadaqah in concerned, it is an optional charity. Zakaat is also

worship of Allah, obeying the command of Allah Subhanahu Wa Ta’ala.
Sadaqah is also worship of Allah, it’s obeying Allah but it is voluntary.

The major differences between Zakaat and Sadaqah is that, there are
certain conditions required for Zakaat:

No. 1 it is given on certain goods, for example gold, silver, ornaments

containing gold or silver, merchandize, it can be business activities, farm
produce, cattle and all the categories.

Whereas Sadaqah you don’t have to possess any wealth that you have
to give Sadaqah, it can be just given, Sadqa.

Point no. 2 in Zakaat these properties and surplus wealth should be with
you for one full year then you have to give Zakaat.

Sadaqah, there is no necessity of any particular wealth being with you

for such and such a period, you can just give it without any time period.

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Point no. 3 You should have a Nisaab level of these wealth. Only when
it reaches Nisaab level, for example, if you have gold weighing 85 grams
then you have to give Zakaat or silver 595 grams, if it is less than that
no Zakaat is there.

Sadaqah irrespective whether the property you have less, more

irrespective, you can give voluntary.

The other difference is, Zakaat can only be given to the 8 categories
who are permitted to receive Zakaat in the Qur’an Surah Taubah chapter
no. 9 verse no. 60 the poor people, the needy etc. which we discussed
earlier.

Sadaqah, it can be given to anyone, it can be given to the categories of

Zakkaat, it can be given to the categories outside Zakaat, there is no
limitation, no binding whatsoever.

Point no. 5 If a person who is liable to pay Zakaat and does not pay
Zakaat and he dies then his children, his heir have to see to it that
Zakaat is paid off, if its from his property before distributing the wealth,
it should be paid off, that’s a liability which is not in the case of Sadaqah.
Person who intends doing Sadaqah and he dies, his heirs need not fulfill
that, it is his own intention, if they want, they can, its optional.

No. 6 If you don’t give Zakaat which is a pillar of Islam...obligation, its

compulsory; you will be punished for that.

As Allah says in Surah Taubah chapter 9 verse no. 34 and 35:

“You will be branded with the fire from hell with that gold in which you
haven’t paid Zakaat”, which is not the case in Sadqa.

Point no. 7 Zakaat cannot be given to the descendants of Muhammad

Sallallahu Alaihi Wasallam.

Which is not the case with Sadaqah, you can give it to the Prophet also
and to his family.

Point no. 8 You cannot give Zakaat to the dependants. The father cant
give to the son, a person cant give to his father.

Whereas Sadaqah a father can give to his son, son can give to the father
irrespective whether he is dependant or not.

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Point no. 9 Zakaat in most categories cannot be given to the rich and
the healthy.

And Sadaqah can be given to the rich and the healthy.

Zakaat cannot be given to the non-Muslims.

Whereas Sadqa can be given to non-Muslims.

So, these are the major 13 differences between Zakaat and Sadaqah

Yusuf Chambers: Well, thank you very much Dr Zakir, that’s all for
today and that really does help everybody to know exactly what Zakaat
is, who can accept it and of course what it is and how its calculated etc.
according to the authentic traditions of the Prophet Muhammad
Sallallahu Alaihi Wasallam and of course Allah Subhanahu Wa Ta’ala’s
divine guidance, the holy Qur’an sent to the whole of mankind.

JazakAllah Khair, Dr Zakir.

Dr Zakir Naik: Waiyya Kum

Yusuf Chambers: Well brothers and sisters yet again we come to the
end of another show and today of course we’ve covered what we believe
to be most important questions that you have posed, via email and other
methods by post etc. and we hope and we pray to Allah Subhanahu Wa
Ta’ala that you have benefited enormously from watching the show and
listening to the answers of Dr Zakir Naik today in our programme
‘Ramadhaan – A Date with Dr Zakir’ I have been your host, Yusuf
Chambers, and tomorrow when we will endeavor to discuss a very-very
important issue and that is ‘Lailatul Qadr’. So do join us again tomorrow
at the same time.

Assalaamualaikum Wa Rahmatullahi Wa Barakatuhu!

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