Channel: Aarij Anwer
What is zakat, why is zakat so important, who gets Zakat, who pays Zakat, how to calculate Zakat.
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On rajim Bismillah R Rahman r Rahim al hamdu Lillah wa Salatu was Salam ala rasulillah who Allah Allah He asked me he
said recently every seven minutes any of Coco Kohli Allahumma robina attina dunia Hassan Hassan al
Salam aleikum, wa
The Hamza if you can have some of the hand the books for the sisters to travel, that will be wonderful. Luckily,
there is a busy man Mashallah coordinating everything barakallahu Li.
Okay, let us begin with as the cat.
As the cat is the pillar of Islam, we have the five pillars of Islam, a Shahada, and then sada prayer, then you have a Zakat, and fasting, number four, and Hutch, these are the pillars of Islam, meaning that without the pillars, the building will collapse. That's what a pillar is supposed to be a rockin building is held up by the pillars, if you remove a pillar, that building the structure collapses, meaning that if a token is missing in the person's life,
their structure of Islam will collapse. So, the cat is that very, very important thing that if it is not there is that building of sound will cease to exist. So it is a very important thing that is in our religion.
The words I got linguistically first means a NEMA was the other word.
It means to grow. It means to become more. So this is for example, earlier the loan would say I'll move Yes, school will in fact, he would say that knowledge increases when you spend it. Right Of course, spending knowledge means teaching other people right and that's the best way to learn anything and when you teach something to someone you really master that concept.
Zagato Zakat also means a Salah Latin, you know, in the language it means for something to be
to, for something to be put in orders for something to be good. For example, Allah says in the Quran for Aradhana au de la humara buma, Hydra minha Catan atharva rosemary, the child that was taken away from the parents a lot spatola describes Hitler saying that allow wants to replace that child with someone who is hate a man who's a captain, who is better for them like masala ham, it's a more appropriate fit for that parents, for those parents to have that child for something that has good and it's more appropriate.
So this is the idea as a guard is
it's not here on little man. It is purification of the wealth that we all have. And through it also is Islam. Through it is we set our wealth straight. When you give us a cut. It's as if we are fixing our wealth and making sure all of the rest of it that the cat is not given from right because the cat is only 2.5% as we'll see the other 97.5% of it is fixed by the action of giving zakat. And of course, it is a has the meaning of growth because the messengers also said that ma Natasa Hakuna min Mal, when you give any charity that does not reduce your your wealth, in fact it increases it. So the cat has all of those meanings in it. So it's a very beautiful thing. It is referred to in the
Quran as sada okay in the Masada call to Lille for Cora and it is referred to in the Quran as a cat as well. Both words are used and
when it is used in the word, the cat for example, on the in the book that you all have, you will see it mentioned that it is mentioned 32 times in the Quran and it is interlinked with Salah 3030 times and the obligatory prayer it is linked with it. Sorry it is a Zakat means the actual Zakat giving money 30 times and 28 times it comes linked with Salah so it tells you when something is a lot repeats a lot in the Quran, it tells you of the importance of that action. The if you think about why a las Mandala mentions the two together of Sala Enza God, you have to imagine the situation of the whole community
Right Alice Parker says about the people living in makena homes without a common salata.
Mr Rubin, maroof, wah wah wah Anil munkar, these people are not describes them referring to the Sahaba initially, but anybody who was a good person who can do this is when they are giving power and governance, what do they establish the establish the prayer, so that establishing the prayer means, you know, the MOS and the institutions are established, okay, from the government level, the educational structure, madrasa was actually called the school by the kids would go to the madrasa which is the local method, that's where they got to learn, you know, all the elements of their of their life and their Deen together, it was only after the colonists came, and they separated the two
things that are sort of foreign and school for, you know, education. But back in the day, everything was in one place. So a call masala has the spiritual benefit, but the establishment of the mass and the establishment of schools and the establishment of education for the public. All that is included in it was a call a call Masada was okay. And then the gives the gut, they establish a system of giving the gut and that takes care of the people of the society that are underprivileged, it takes care of those that are needy, those that are poor, those that are in debt, those that need money for a short term, not necessarily long term needs. It takes care of them, it finances the army, it fixes
the roads, all of that institution is set up through what
is a cat, right. So you see when Sala and sakata mentioned together and those two institutions are established, they take care of all the social needs everything. So our spiritual needs, educational needs, our community needs for coming together spaces for people to come together as the cat is for the the the establishment of all the social services provided by the government. That's how the cat used to be so Panama. And in the time of Omar disease, Rahim Allah was when the Muslims had so much Zakat that there was no one to take the cat. So they will take that the cat and they would feed the birds in the mountains, because they had nothing to do with that money, everything everybody was
taking care of Subhanallah This was when implemented right? This is what happens literally eliminate poverty. So hon Allah We ask Allah to return us to those dates.
This is the cat mentioned in the Quran. Of course it is by the consensus of the scholars. That is why Jim Okay, and very famously, the workers, the fought the people who said, the God is not mandatory, so it doesn't need to, I don't need to go into why it is mandatory. But one interesting idea from the Quran, which Allah describes the people who are being tortured in the fire of hell, in Surah, surah Toba, Allah says, Valentina yakni zunar, the Hubba wolfin Lata lionfish una haffi Sevilla, for Bashir whom we are having a name these people who are hoarding gold and silver, and they don't spend it in the way of Allah then tell them that a severe punishment is about to come and
strike them. The Ayah was speaking generally more specifically about the corrupt priests and rabbis, okay.
of the past, and how they would take people's money under the guise of you know, gift for the sake of a law and then they would use it for their own personal gains and benefits. But then a lot smarter makes this a general point, not just criticizing them, it says, anybody who does this promotion when we are given a name, and what's that other than a name? What's that painful punishment? Yo yo ma la haffi Narayan the day when it is melted, those those ornaments are melted in the fire of hell for two cobia Jeeva whom was you know, boom, boom, and with that, they will be branded, you know, branding is right. They take that hot metal and they would, you know, roast like
it will it will be put on the person's job at home on their foreheads, while Judo boom on their sides of the whole room on their backs. In every different way. They are being branded by that and then there will be sent to them to me and Fujiko for the Puma content acne zone, this is what you have gathered for yourself. So now taste the the enjoy what you have gathered for loop Puma conduct acne zone. Ignore issues as he says to me Mooji has an ad set adset bill came in utricle Jihad motiva with over 35 ss the LM in K for your Salma, Tamim al Qaeda.
inaka to ivatan li a snazzy meenal Allah Allah He says, Allah sparkler is mentioning the different different types of body parts to cobia Jeeva, who, you know, the forehead and their sides and their back? Why is he mentioning these three, it's to show that the punishment will be given to them. And they will taste it in different different ways to give us an idea of how severe the punishment is, to make us realize how big of a crime it is to hold back as the cat. So hon Allah. And the messenger, of course, said my data, my data is a cat over there. So because once you have given this a God, then it is not alcons that is not something you're hoarding, then that's your money, you can
do whatever you want with it, you can save it, you can spend it, you can invest it, once you have given Zakat of it, you can do whatever you want with it. That's okay. But if you don't get out of it, it counts as the money that's been hoarded wrongfully. And that's what the AI is referring to. So what happened to the law for us, the equation is very simple, gives a cat and whatever else is left on hand to lovey enjoy the blessings of that one in law Hill. Okay, that is
a cat now.
I'm going back to a workshop I prepared, but that was like an eight hour workshop. So I'm not going to go all through all those points. But I'll go through a few things. Number one, is let's look at this piece number four, who pays the cut? It says that a adult who has reached puberty a Muslim and a person who is often someone who is seen, meaning that they are of sound mind, okay, so if somebody is not of sound mind, as a cat has been removed from them, okay?
Of course a person is not Muslim, they don't pay zakat, they have bigger issues, which is they have to accept Islam, and adults have to give Zakat there is a a philosophy of the scholars is a difference of opinion among the scholars with regard to the Zakat of the child's money. Okay, the money that a child has a and a lot of them.
it is okay, the Al Maliki or chef here and whenever they say that you have to give the cat from the wealth of a child. Now, the wealth of a child to conceptualize what that means if you have children, their wealth is your wealth. Yes. Like my daughter does not own anything. I own it, she just you know, pays with it. Okay. And so that's not what is referring to it is referring to particularly for example, an orphan, okay, so a child that is an orphan five year old child, father passed away, and this child has a lot of inheritance, right? Or has some inheritance, give that child now the profit isolates from that elementary demon, the human failure fee, while I took who had data, who knows?
The person who is taking care of an orphan child, his orphan child hasn't money, you're taking care of the child, don't leave this child and his wealth and attended a failure fee that money should be used in some sort of investment in some business. So it grows, had the law akula who saw the Hata cola Masada de la Rocha, who had that cola soda, he should not just leave it sitting idly and let the cat eat it away. So from that, what do you understand is the got to be given on the child's money or not.
From the Hadith, it's very clear that you The Prophet said that is the capital he did up that means the God is given from that wealth, right? That's the idea behind it. And from this, also, we get the beautiful understanding of the religion that you know, money is meant to be, you know, moved around invested, so that it grows and doesn't just sit idly, the cat is consuming it. This is an important understanding, you can't just sit on money, because if you're just sitting on it, guess what's gonna happen, it's gonna go down by 2.5% in net value over every year, in fact, even more because we also have inflation about 2%. So, you will lose four and a half percent of it every single year. So it
has to be put into some sort of investment. So it grows 111 it grows, you give us a garden with the growth it gives the garden the principle as we will see and is paid in Baraka all around. So that is the opinion there. What
was the cattle wealth? Let's look at that. The cattle wealth is what is it that you give the cat on? Okay.
Number one, the wealth that you have complete ownership of this is an important one. This is a very important condition. Is this called Mr. curar own milk. We have
Complete ownership and access to that money. Okay? That's number one, please keep that in mind. Number two is free of haraam income. So God does not do upon earnings that are haram on page number four, by the way,
one should dispose of that amount, and give it in charity and seek forgiveness from Allah. This is an important point, if somebody is earning money from heroin, for example, you know, they work at the lcbo it's very hard thing to do, whether all you're doing is selling alcohol, there's no gray area there.
So that wealth rate should be purified by just giving it away. Okay. And if a person has I mean, that's like all of their wealth is haram. But if a person has some element of their wealth that is impermissible, for example, maybe they have an account where they get interest by from the bank, right, and the bank is not going to waive that interest off, or they have some sort of investment is impermissible. It's a haram investment and it's earning like a bond or something is earning interest or something, that particular amount should be in the correct the correct opinion is, should we just give it away, right? So if you've earned $10 in interest, try your best to stop burning the $10 in
interest, and give that $10 away, okay? And there's no Zakat on that because the cat has to get halaal belt
it has to meet the nisab it has to meet the Sadhguru nisab This is a very important condition. And nisab is 20 dinars of gold, which is 85 grams, or the 200 did hums which is 595 grams of silver. Okay, these are classical, classical.
The measures for it, the 85 grams and the 595 grams are estimations of those and very close estimations. What does that turn out to be in dollar value? The dollar value of that of that is around $400. So if we have around $400 in your bank that you have for the whole year, then the cat is due on that money. All right. That is the idea. The last point of course is the how Allah Allah he'll hold the whole year has passed by and then Zakat is due because the gods do only once every lunar year. Okay, so if a person has let's do an exercise, and they have $1,000 in their bank, and that $1,000 has been with them for one year, the gods Yes or no?
Just Right, that's the idea and this isn't their bank account. So they have complete ownership. You know, the year has passed by so the cat is
coming to that details we're coming to inshallah
Excuse me. Let's move on to
Masada, who receives the cat who can take as a cat meaning like receivers look at Okay, so this is from the ayah of Quran Surah Tauba in the masala portolan for para Velma Sakina
Sakina will Amina Elena will love it elefante boo boo boom
Avi well avadi mina Murphy Sevilla he is surreal for you oughta mean Allahu Allahu Allah subhana wa This is a very welcome Mama, this is a obligation from Allah and Allah is most knowledgeable and most wise Who are these eight number one fukumura the
the poor okay you can read with me I will not say again the
the needy will differentiate between the two this shortly okay. Number three, I will answer you Allah Melina Allah. Those employed to administer the car number for Alamo I left at Punahou boom.
arts are to be reconciled. This is anonymous. Okay, you give them money. They're close to Islam or the just accepted Islam. You give them money and they're like, Okay, I'm becoming I'm becoming a Muslim. It will come to this one as well. Or fair record. It says the one who isn't slavery, it means anybody who is in slavery or imprisoned record has
both meanings applicable.
A lot Do you mean number six?
That wolfy Sevilla number seven.
The wave Allah wobbliness surreal and the
destitute traveler. Okay, we'll explain these quickly quickly. Because again, we want to get to the calculation point. There's a lot of, you know, details around these items.
Firstly in nama, though the ayah starts within the masala autoland for karate Misaki and so that means only these eight nothing else right?
the Messenger of Allah Azza wa sallam said,
Amen man came to the Messenger of Allah and he said give me his account. The messenger said in the law has our LLM yo Bobby hook me Naveen. Voila. Ready for so the pot had the hacker mafia? Who up for just a half a Manhattan for in continental kill a desert zap RFI Touka Huck. He says the messenger says Allah has only chosen only Allah has chosen himself to decide who gets his accounts. Nobody else no prophet, no other human being decides says Allah Himself chose who are the categories of the guards by revealing the eye of the Quran. If you are one of those eight, I'll give you your right. This is important. The Zakat is the right of the person who's receiving it. Right. So once
the year has passed, okay, I have $1,000 is the cat is 2.5% will as you know what's 2.5% of $1,025? So one year passes why Okay, Ramadan, start in Ramadan, counting the year and the Siobhan has ended. Okay, now, one here has passed. Yes. Great.
Now, of the $1,000 I own 975 that's actually my money, the $25 is the money of
course, the people who are the recipients of the cards are 32 kahakai, I will give you you're right it becomes there right. So, to tell you of the urgency of the matter, right. And then tokara are the people who are poor and Misaki the ones who are needy, the differentiation here between the two is
fuqra have a higher need the poor have a higher need and Misaki and have a lower need. Why also Cora is somebody who has very little if nothing, okay, he has
you know something like very, you can even make his his ends meet. Okay. What miskeen is somebody, for example, who has a job perhaps, was working, but it's still very tight, everything is hand him out. Why is that? For example what says in the Quran, Amma Safina two four candidate Li, Mei Sakina, Yama, Luna Silva, the people who are Masaki, they own the ship. And they used to work on it. Right? So the he used the word Misaki, to describe the people who were working on a ship, so they had a job, but perhaps it impede them that much. They didn't make enough to feed their family or have meet all their needs. So that is an miskeen. That's the needy of a lot. This is an important thing to
understand that God is not given to the person who's only starving. Okay, that's a failure. That person is obviously number one in the list of eight, but also the one who isn't starving, but is in a very tight situation. And the cat can alleviate his pains. If the cat can take him from a situation where he is worrying next month, how am I going to do this? How am I going to do that to a point where he's like Alhamdulillah I'm good. Right? That's very important to understand the distinction. Well, like I said, there's a lot of difference of opinions of the alcohol here. I will not go into the details. I'm just giving you a few of the
few opinions I have a lot for example the humblest policy for Qi is Mala Mala Mala cassava, Kuru mo Tianmen hija de is like, for clean has nothing or herbs nothing. Okay. For example, somebody has a need of 10 dead humps and they have nothing. Okay. And he doesn't is not able to earn anything that's a Philippine. Whereas miskeen would be somebody who can get from 50% to 100. That's a miskeen. So faqeer is zero to 50%. And then miskeen is from 50 to 100%. This is the opinion of the hammer these colors just to give you an idea, right? It's not like exactly you're like you're calculating Oh, you are from a scheme, right but just give you an understanding of what it is meant
to be. Okay, so that is the poor and the needy, those employed to
administer the zakat.
The ones who are employed to administer the Zakat will allow them in my opinion, and the opinion of like the scholars that I studied from this
is not something that applies to normal people, like who are working in the cat, this applies to the government, who has employed employers to collect the carrot on their behalf. Okay? Because it becomes an issue of what gala is it becomes an issue of you are now like, a representative. Right. So if a, you know, if a person has a employer and organization has an employer solely working to distribute the cut, even though they could say this applies to them. And again, this is, you know, differences of opinions are all there, I'm not here to like, say this is right, or this is wrong, I'm just telling you what I believe is the correct thing here. In my opinion, this category is not
applicable, because I really nearly have, we're always from the government. Right? The the employers or the era that the employees were appointed by the Islamic government, and they will be the ones in charge of distributing the card to them. Right. So it's, it's the, the IOM revealed, the circumstances from then to now are different. So that's why I would hesitate to just take it as it was in, you know, 1400 years ago, or 1300 years ago and drop it in today and apply today. That's why I'm saying that but if someone believes and teases opinion, based on, you know, the source and texts, and but our will handle that, it's their choice, okay? Number four, more or less at the Hulu
home, people who are
close to slam their hearts are reconciled.
They basically have to if you give them money, they feel that Islam is honored, and they're attracted to it. This is something that can be done. It was more prevalent when Islam was dominant. Okay, less prevalent now. And so Paula, the recipients are mostly Muslims of the cap a lot of time. For the card, like you mentioned, it is a lucrative boon it is the people who are in slavery. But also, it is a Syrian Muslim, and any prisoner that is a Muslim, can also be freed will Allah and that is the opinion of the Hannah Villa and many others.
What do you mean?
is a person in debt, the details of what is a person that is basically a debt that is permissible debt, something that is weighing them down?
If you see somebody who had almost $20,000, and people gathered this account and give that person that money will handle that, that's a good thing. Okay. There is a important note about how much they're earning. Okay, if a person for example, is a fatigued or miskeen, and they're able to earn enough to make them their ends meet enough, earn enough to make 100% of the ends meet, then they shouldn't be Givens the card in addition receives account, right? Like, if they're at a point where they're over the limit of, you know, their daily needs, just by a little bit, it's preferable for them not to get it because they're able to get money, right, maybe they have to work a little
harder. All right. But if they're not able to get money, despite working hard, or prices are rising, rent is increasing, and everything is difficult for them, then, of course, the cat is given to them. Like same thing here, if a person is able to earn money to pay off their loans, there is some something to be considered there. But if they are in a situation where for example, somebody had cancer, like some surgery, okay, this happens in America a lot, right? Somebody has some surgery, and now they're in debt. And they can't work because they're in bed, they have to like recover, and Subhanallah, this person is loud is going to get thrown on the street, because all of their assets
will be seized from them. So that's a person who's definitely got it, right. Whereas somebody who bought a car for $20,000 makes $500 a month, right, but it's not paying off that loan. So whether you earn enough to pay it off in like a few months, if you put your mind to it, right, I don't think you're on it.
So it's something you figure out between the situations will lawanna study the law is the most controversial one. I won't say too much about it, but allow them feasibly the law is, and there's classical differences. They say there's three possibilities. One is actual, the army of the Muslims. Number two, is anything to do with the helping the army have the most Musalia. And number three is, per judge. This is the opinion of the majority of scholars as a judge are included in this category. But below all of this category has become a place where people say there's a lot of flexibility.
I would say that we should stick to the three mentioned by the hospital for koha. And of that three, really four jobs are the ones that are really
at the last category, which is the, the Ebon, Mo Sabine, the destitute traveler, this is somebody is somebody who has money in his country in his home. But when he's traveling, he's lost his money or lost access to his money. Okay? This doesn't happen in the modern world as much because we're always connected. So that's a good thing. But imagine for a minute you lost your phone, you lost your bank card, and you were, you know, somewhere where you needed money. Okay, and you had no relatives and no way to get any money. There's no ATMs nothing. So why don't like now you are in the service. Even if at home, you are, you know, well off. At that point, you become even more severe. And that is
when you can receive enough as a card to get you your money access to your money or get you home. One of the two things right? If getting you your access to your money is quicker than you get damaged. If it is getting you home is quicker, then you get that much and off you go. Alright, so those are the eight categories.
Vanilla Hill, well is the cat paid, the cat is paid Of course, when the lunar year has passed, you have to count the lunar year most people do in Ramadan. Ramadan. That's why we're talking about this before.
Questions about this before we get into actual Zakat calculations.
Is this the road?
Is the road a little road?
Yeah, so now in modern times Fie. sebelah has been used, for example, to justify, you know, building expenses, expenses of like schools, running organizations. And those are opinions based on scholarly fatawa right, I'm not wanting to say Oh, that fatwa is wrong or right that's not my place. Okay.
See knowledge. Willow alum, I would not say this from PCB Linda. Right, I will not include it in that category. I will restrict it to either it when the state like a proper Muslim state exists, the funding of the military and the army number one, and number two, the funding of the Hajaj.
Those are two categories that I would myself say FISA law applies to because that's what the for millennia from the very early times have restricted it to now if someone wants to expand it, and it is a key and a Mufti and they say this is reason and there's you know, situations will handle a lot that's their, you know, fatwa and that's their, you know, scholarly opinion, right. I'm not one to debate that, but I will always say this is just like my personal take. We should tread on the side of caution when it comes to the cat, right?
Like a Mahajan. Yes. From the start this habit is definitely your customer.
Yes. So the cat as you will see, you can give the card to
anybody Besides, like, say like, you cannot give us a card to your wife because she isn't your dependent. Or your kids or your dependents. Right. But it's all the family members you can give us a cab to right. Parents are also the cats.
I can't remember actually.
Yeah, you know,
aluminum foil was a key. Well, we'll we'll add Of course, yes, sorry. A lot of sun. Anybody who is from the soul,
which is the fathers and grandfathers and lrec anybody who is your descendants, right your dependents and descendants, wife etc.
None of those can receive the card those are actually your they're inheritors of your wealth. right they're not recipients of Zakat, so they don't receive the card. The rich obviously don't get the card you know this is not tax benefits.
And the family the process on don't receive the cat but there's a lot of like you know, filler for who exactly that is and how what it looks like today. Lastly, the non Muslims don't get the cat either. This is
is something that is established?
Because the Prophet said,
it is to codomain Alinea, him for Toronto Allah for him, the cat is taken from the wealth of the of their wealth, their rich, right there being the Muslims, and it is given to their poor. So then this means those poor are what?
Muslims or non Muslims?
Same as the first one, which is the ones who are Muslim, right? You take into account for Muslims and giving it to the Muslims. That's the idea. Even Ahmed says that it is acceptable to give the cat to the one who is more or less at the Hulu home. They're hot number category number four, he says this is, you know, permissible, says anyone but also says that if there is a non Muslim employed by the Muslim state to be the worker to give the cat that he can receive his salary from the gods as well, while on while right. But those are exceptions. The rule is that is not to be the case. The debt, right the person in debt has to be a serious debt.
You know, like I mentioned, somebody got sick, sick, some Something happened, their source of income got reduced dramatically. And they don't make money enough to be able to pay that debt off. That will be about it.
So when it comes to poor non Muslims, for example, right now, this is a modern day question I asked this of the fatwa committee in America, right? The imja is the American Muslim jurists Association. And I asked them specifically about charities, Muslim charities, Muslim charities by law are not allowed to discriminate, hey, if a Muslim charity, right, like say, you know, idrf or ends at F or America leaf or something, is giving money to like poor people, then they're not allowed to say here Muslim take money here non Muslim, or I can give you money, right? They can do that legally,
there will be discrimination, and that will be caused for revoking their license. Okay. So are they a charity status? So the first one from the under committee was that it is permissible to do that, because there is no other way you could do it. Right? That's an exception. And there was they would say that to err on the side of caution you should give you as a cat to like, for example, send it to a country where the majority of people are Muslims. So the probability of enormous and getting it is few and if they get it, no problem, we'll handle it. Right. Whereas a place where there is a lot of Muslims and non Muslims, you should help them to suffer. You should help them through sort of a
general soccer donations, you know, that should be used for them. Okay. But the cat should be as much as possible kept for the Muslims for organizations, which is very difficult for them to make that distinction. It's not impossible, then for them the ropes, the ease is there to try their best job?
I don't know that.
But I know that question like because I had that question. Asked the footwork committee of that and they said that's the position of the of the warfare below.
What has What sorry?
To the Muslims.
Only Muslims, Zakat is meant to be only for the young. But now under circumstances where you cannot differentiate you cannot stand in like a camp, like a refugee camp and ask a Muslim, okay, here's your non Muslim, you go take South Africa, it's a very difficult thing to like, implement right? Back in the day, when the state was in charge of distributing zakat. It was different right? They could you know, no, they they were no details and they would help out a non Muslim in South Africa they would help other Muslim as the cat right. This was no I gave to my for as much as I have read, never has like a non Muslim like turned away from like health. It would come to the bathroom and
they will always get money. Because that's from the Makarem Allah. That's what the religion teaches us to help anybody
But sockets specifically right, just like a cat cannot be given to, like, you know,
I don't know,
it's got can be given to fix the microphone or something, right? Doesn't make that fixing the microphone is not a good thing to do, you can do it from southern Germany. Right? It's just, it's very specific. And allows Parker has set it that way to take care of it, you know, the larger problem. Now, modern day organizations have a problem, because it's tough for them to be able to distinguish. So for them, the first one is try your best and most people will, you know, accept each other. So that is the people of the gods who receives the cat.
The people who,
So you will give Zakat to your family members, as we were discussing, this is an important part of By the way, not to your inheritors, like father, grandfather, grandmother and mother, or your descendants, but a brother, like a somebody who is in need descendants as in like, your child, grandchild, great grandchild, they can get the car, they get your inheritance and your support, but a brother, a cousin, you know, and and they all can receive the cat, there is no problem whatsoever. In fact, it is good to give the car to family members, it is good to do that. Because it's two others is the cat it is the Azure of keeping family ties. So it's a very, very good thing to try to
do that whenever possible. inshallah.
Now let's get to the capital assets. So we are on page number seven of the job, okay? You don't have you can fill this out at home without data. And there's also in fact, a calculator that you can go to online and just put in the numbers and it will calculate for you, I would actually recommend that you have like a system of calculating zakat. Like I have a spreadsheet, right and I have my information there, and I update it and every year, you know, I make a new copy of it. It just keeps it very simple. So the process of calculating becomes easy and quick. And you can give us like 100 law with no complications and a clean conscious Java.
The capital assets what is the car do you want? What kind of assets? Do you give the cat? Or do I give the cat if I have a bottle of water? What if I own a home? Right? All those things, we have to figure out what about clothes, right?
You know, laptops, all this stuff is valuable. So what do I give the cat on? That's the question. Well, here's what we give them. Cash and liquid assets, okay? Anything that's cash, okay? Or like you know,
any like in your bank account or in your hand cash, any type of cash, anything that you can use to pay somebody, okay? That is considered to be cash, liquid asset is something you can right away turn into cash. Okay, right away, you can turn it into cash. So
those are different. But say for example, let's use like a second example such as
you have some cryptocurrency you can turn into cash right away, okay? You can, right? So you know, it's, it's considered to be like a liquid asset. Stocks are liquid assets, but there's a separate category for it. So we'll come to that in that point each other, but liquid here means you can get the money right away. It's money that it's like as if you have it in your hand. Okay, that's what
that is number one. It's important to count all your cash. So if you have an account, all different accounts, if you have some cash to store somewhere, right? If you have, you know, different places you put money in, it's important to track all of them. And it's important to make sure that we don't forget about like an account or something that has some cash sitting in because the cat is due on it and it is the right of the the poor and the needy. And so we have to be careful.
Gold and Silver. If so gold and silver are called a nickname in Arabic. The two two valuable currency currencies.
Gold and Silver there is an opinion
amongst the upper half for example, where you know they say that gold that you wear right like as a not you as men, you should not be wearing gold.
But what the truly right the the, the jewelry of the women that they wear on a regular basis doesn't count as
gold that you are storing for value.
Right. So that is an opinion holo alum. The you know the opinion of the majority is that you take all gold, right you take all gold even if it is truly even if it is like jewelry and whatnot, I mean how much jewelry going to go over I mean you're always wearing a lot of necklaces allow on right but it would say just include everything and just gives a card on it follow on but again there is a difference of opinion. So if you follow the opinion that it is knows a cat on and believe in what you wear,
as in like
a woman wears regularly then there is no Zakat upon that will not wanna go
that there is a peanut for example the the Shafi opinion
sorry one sec. Yes. And Halim example fidelity you are
molecules to rally highly esteemed Ryan Moran
amalickiah I'll share your ear and I'll had Abdullah say that it is no problem there is no catch on it. If you are wearing it like a woman is wearing it. No problem knows okay.
whatever she wants to wear, she wants to wear a lot of guys watch I love it for
now, they always say enough Iran Minnesota, right? Whenever they talk about this is a you can be doing this to escape from the gun. Okay, you can be doing this to run away from Zakat, because we know that Allah will catch in shower. There's no doubt about that. So, so, so for example, if a woman is wearing, like gold rings, and she has a necklace, right, according to Malik here in the Shafi area, and it's a it's like clothes that she's wearing, right? It's like the clothes on her body. So that is why it is accepted. Right?
Well, if they say like, you know, whatever it is, you know, like it's their Malinois whatever is okay, right?
That that is fine. But I would say, I would err on the side of caution and include that, right.
Include that, right. So now, for example, like in our, in the box on the culture, for example, the gold, the women don't wear a lot of gold around the house, but the goal is passed down from generation to generation. So my mom got her like gold from her mom, and she's gonna give it to like my granddaughters, right? And they will like, probably never wear it, maybe we're in once in like five years or something. But is this like a family thing is passed down in the family. Now that's not wearing regularly, right, I would count that as the capital, right? It's an asset. So it would be, you should include that, well, I wanna get the gold and silver. To make things easy include that
in your calculation, what you would do is you would take the value of gold and find the current day current price of gold, how much the price of it is, and take what's close to like market value, right? So the price quoted is you're not going to get in the market, right? If I take like my wife's ring, and sell it in the market, I won't get the exact price that I'm getting on the internet. Right? So 80% of that roughly is a good safe figure. Okay, so you would include that 80% of the value of the gold of the jewelry because if you were to sell it that's what you get in money from it right? And you would put that as the value of gold as the value of silver if you have a jewelry that
has you know, like
for example stone in it stone there's no sacaton but you can estimate how much is stone how much is silver how much is gold you can go to like a jeweler once and get all those figures and then once you're done that handle that doesn't change every year right pointers you can estimate you can write down and you can then write this is how much my gold and silver are worth in total right well our debt you owe debts owed to you right that that has to be given to you okay. So
that is to be added
to your total amount, okay. So for example, I have say $5,000 in my bank account, right? And I gave $5,000 to my friend, okay, and I am very sure that he will give that $5,000 back to me. Okay. I will give you the guard on
$10,000 Okay. I will give
Got on $10,000 because I'm very sure he's gonna give me that $500. Now I also gave me $1,000 to a friend and that guy, you know, his business is bankrupt, and he's like, inshallah, I'll give it to you one day. I'm like, he's never giving it to me.
That that one day is never coming. Right? I've already forgiven him as a philosopher, you know, inshallah, Allah will reward me the day of judgment, then that 1000 I don't add to my total amount. I just pay on the debt. I am sure I will get back. Right.
is doubtful, but the 5000 I know he's gonna pay me back. I'm very sure. Right. So I pay zakat on that?
You pay $5,000? Yes, yes. You add it to your total money. And then he gives up.
Within a year, of course, a year has to pass on it.
Can you give us a card? Before it's time? Yes, you can. Right. Can you give us a card before the whole year has passed? You can calculate right? And you know, calculate fairly well that this is how much I will owe once Ramadan starts and you can pay yours or get in Siobhan before Ramadan begins because it's good to do that. There's no problem. We'll lower right. Great question.
Yes. If you if you forgotten about the debt, or the money you have given that's the money that's not coming back.
Oh, no, no, that's not spending you're doing for family. That's not a debt. Right. You give them this like a loan?
Right. So that's nothing, right. That's like you spending money on them? You're giving them money? Yeah, that's it.
No, no, this was a customer that's like as if you have like, bought them something. You've given them money?
No, no, you don't?
Yes. Yes. Yes.
Do you give that as a loan to somebody do you know
the support for them to like,
support so this that's, that's doesn't count.
Yeah, it doesn't matter.
Later on, as well. You can make that near for sure. Right. As long as you don't then say okay, now change money out. Give me my money back.
No, don't count that one. Don't count that one. That's not you don't be the gods on that.
Is that what you mean? We'll talk after I sighs Oh, maybe I'm not good.
Okay, so if you Oh,
okay. Okay, so you're already giving money as and then now you have to use the card. Okay. Now I get the question a lot. I haven't
said so. The cards when you give you have to have the knee of saying this is a cat. Yes, at that time. This is as a cat. You have to have the knee of doing that. Right? I
it's soda, soda, right? You can give to a poor person, but also soda. But I say here's 4% and this is known as a cut. That is a cut. Right? So great question. If I've given money away, right. And then I say okay, can that money that I've given away count as the cut the answer
answer is no. When you're giving the cat you have to have the nice saying I'm giving the cat is that letter for clarify a lot of time, I don't know what happened. Maybe I'm sleepy.
Quickly shares and investments. Okay, so there's a formula here for shares and investments, I'm going to jump to the idea of investment accounts, okay? Because nobody has shares in like a random account, okay, generally speaking, you have shares and stocks and other assets in a account, that is a generally a registered account. So you have an RRSP account, which is a Registered Retirement Savings Account, you have an RSP account, which is for the kids, and you have a TFSA. Okay. TFSA is tax free savings account TFSA accounts like cash, because you have access to it 100% TFSA, is like liquid cash, your, you're gonna get it in like two weeks, the check is in the mail, it counts as
cash, she will take all of your TFSA and add it to your cash amount
RSP, you have no access to that money, because that will be given to the child that will be given to the child wants to go to university, okay, you have no access to that money. So there won't be any socket on it. However, I would say, with RSP, a person contributes every certain frequency, okay, I will say a person out of out of here should calculate how much one year they have put in RSP. Right, because if you didn't put it in an RSP, you would have been in your hand. Correct. And you give Zakat on just that one year's amount. And that's it. That's to be careful, because what you're doing is you're taking money that you have, and I'm putting it in a place now you don't have any more
ever, right. So just to be safe, that you're not for a minute because you're not running away from the cat, you are preserving that by giving Zakat on it. Let me just take a few more minutes a
couple more minutes a Java
It was a rice RSP rsps have what's called a withdrawal
or withholding withholding tax or withdrawal tax, right. So what you do is if you have say, if I take out $10,000 in RSP, the place that holds my RSP will charge me 20% tax. So how much will it will be left?
8000 right now $8,000 is what I'll get if I take a 10,000 out. Okay, now that 8000 when it's added to my income, I will probably pay another $4,000 in taxes on that 8000. Now my income I'm just making it up, right.
But assume that 8000 Now when it comes to my income, when I pay my tax, I have to pay for all of that to the taxman. So what's left in my hand is 4000 you give Zakat on the 4000 from your RSP. That is, you have to do a bit of calculation before you do that. But it's an important thing to do. So that you are giving the cap on your RSP correctly many people give Zakat on all of their RSP matches all their RSP is like you know a lot. But you don't have access to that money. Some people are like I don't have access to all of it. So none of it I will give Zakat on that's not true either, you have access to some of it. So he gives a cut on whatever amount you have access to it. That is the
rsps last thing I will come to is the business assets and and property if I own a house to have the capital the house
know how problems occur on the house? Well, hamdulillah it's my house, right? Correct. If I own a house, and I'm renting the house, for somebody, someone's renting it for me and I get monthly income, the card is on the house on the income
on the rent, right? Because the card is on the rent, if I own a house and my business is to sell houses, okay, my business is to sell houses, then I will appease the cat on the on that thing. Because it's something I'm buying and selling. Okay, assuming I've had it for the whole year, I will pick up on this value. If I have a house and I'm not sure I don't really live there. But I don't want to rent it out because I don't want people to ruin my walls or something. Okay, then there is those accounts until someone's rents it or until you sell it and then the cat will kick in, you see. So
it could be your second property third property. You could have multiple properties right now again, everything is electronic circuits. You can be trying to escape circuit or you can park
Your money in a house hoping to run away from his account was alone was your intentions. But you're like, you know what I bought this house for, you know, living here, but I can move right now. I don't know when I'll move I don't want to rent people will ruin my washroom or something. Right? So then that the house will just stay there. Right? That is your property for business. If you have a business, anything you're selling, if I'm selling water bottles, okay, I will put the cap on the total inventory of water bottles that I have, that I can sell at a wholesale price. Okay, not the retail price. The retail price is $1. wholesale price is 20 cents. RP is a cat on the all of mine to
inventory 20 cents a bottle that at the end of the year once the whole year has passed. So those are the assets.
restaurant business is tough. So
yeah, if your water stays for one year alone,
it has to last for the year. It has to last for the whole year. Right? So if it doesn't last year, it's going every month every two three weeks is coming and going.
Great, great question. You have money you have saved up you have $100,000 you saved up to open a business, you put it in the account. Okay. And now you're reaching the moment you put it into the account is the one
of the year on that money. Okay, now you wait if you have purchased your business before the year ends hamdulillah you purchase your business if you haven't purchased it has been a whole year then you
he's forgotten that
we will talk about the specific question nature right like by ourselves but if I have money that I put away that money if all your passes on it and haven't touched it after
will do questions as well. Quickly liabilities right. So any debts you have, okay, any debts of course not the interest part you remove, that would not be counted.
Any debt you have is to be subtracted from your zakat. So imagine I have to give somebody $1,000 Okay, then that $1,000 will be subtracted from my overall I have $10,000 I have to give somebody 1000 then my overall socket will be on 9000 that's it right now, I calculated the last year month, Siobhan my monthly expense is going to be $500. Guys, groceries, you know, so I will take that $500 and I will add it to
my subtractions because I will pay them money out of pocket before the year ends. Number three, I have a long term debt, maybe you have a student loan, so the loan is $20,000. Okay, if you start subtracting $20,000 from your total amount, you will never use the calculator. Right? You will never be the guy. So what I do is I pay $1,000 for student loans. Okay? Yes, a month. That gives me for the year how much
12,000 I will subtract the 12,000 for the year from my total net. That's how I will get mine the catchable amount that applies for mortgages that applies to student loans any loan term loan, you calculate the monthly multiplied by the year and that amount you subtract from your from your net value and then you get a count on that same thing for business assets as well. And, and whatnot.
Car Loan if you're making monthly payments, same thing.
Anything you're making monthly payments to same thing happens to it will toggle after a sale we'll do questions and answers and help each other out. I know there's a lot of questions and we've rushed to the end a little bit. But we'll recap the liabilities for one more time and hopefully you
to that. Hello