What is Zakaat?

Zakaat is that amount which is made obligatory by Allaah, to be paid to a particular person, or  persons, possessing certain special characteristics, as explained later.

 It is not payable to any other individual, or for the welfare of any institution which is not a  person.

The rate of Zakaat is 2.5% - which is the same as 1/40  or two and a half cents for every rand.

Who should pay Zakaat?

Zakaat is obligatory on a free Muslim, who is firstly, responsible enough to fulfil religious  obligations.

 He must also possesses wealth, equivalent to a certain minimum which is called Nisaab.

This wealth, whether in the form of money, gold, silver, utensils of gold or silver, or articles of 

merchandise (for sale ) of whatever description, is liable for Zakaat, if the value amounts to the 

Nisaab.

What is the Mininum (Nisaab)?

1 ) The minimum one needs in order to be the owner of Nisaab is:

a) 87.48 grams of gold or,

b) 612.36 grams of silver, or it's equivalent in :-

c) cash

d) merchandise (for sale) or

e) livestock (see relevant tables for calculating nisaab) or,

f) other income such as rent.

2. ) The minimum must be free from debt and from the basic necessities of life, such as shelter, 

clothing, household furniture, cattle for personal use, armour and weapons for personal use, 

books (of scholars), and tools of a craftsman.

3 ) The minimum must be in the possession of the owner for at least one uninterrupted year.

 If at any time during the year the individual possesses less than this, the year's possession is
interrupted, and consequently the obligation of Zakaat falls away.

 As for the produce of the original minimum obtained within the year, it will be added to the 

same type of wealth, and Zakaat will be levied on it, on completion of one uninterrupted
year for the original minimum. The rule remains the same whether the produce is obtained by 

trade, inheritance, or by any other means.

Source: Taleem udeen by Shykh Mufti Afzal Hoosen Elias.