Detailed zakat guide

http://www.central-mosque.com/index.php/Acts-of-Worship/detailed-account-of-zakah.html

[2:43] And be steadfast in Salah (prayer), and pay Zakah, and bow down with those who bow down.

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Zakah:

The person who has some wealth and still does not take out Zakah for it is regarded as a great sinner in the sight of Allah Ta'ala. He will be severely punished on the day of judgement. Rasulullah sallallahu alayhi wa sallam said: "The person who possesses gold and silver and does not give Zakah for it, then on the day of judgement, slabs of fire will be made for him. These slabs will be heated in the fire of jahannam and his sides, forehead and back will be branded with them. When these slabs become cool, they will be re-heated and the entire process will be repeated." Rasulullah sallallahu alayhi wa sallam said: "The person who has been given wealth by Allah Ta'ala and despite this does not give Zakah for it, then on the day of judgement this wealth of his will be turned into a huge poisonous snake which will encircle his neck. It will then tear the sides of his mouth apart and tell him: 'I am your wealth and I am your treasures.'" We seek refuge in Allah Ta'ala. Who can bear such severe punishment? It is the height of foolishness and stupidity that we are prepared to pay such a great penalty for a little greed and selfishness on our part. It is extremely foolish and improper to refuse to spend in the path of Allah the wealth that Allah Himself has granted to us.

1. If a person possesses 612.35 grams of silver or 87.479 grams of gold or any currency that equals the value of this amount of gold or silver, and this wealth remains in his possession for a complete year, then on the expiry of this year it will be wajib on him to give Zakah for it. If his wealth is less than this, Zakah will not be wajib. If it is more than this, Zakah will still be wajib.
2. A person possessed the complete nisaab for about four to six months. Thereafter, this nisaab decreased, and after about three months he acquired some other wealth (and he once again possesses the complete nisaab, even in such a case Zakah will be wajib on him. In other words, if a person possesses the nisaab at the beginning and at the end of the year, Zakah will be wajib on him. By the nisaab decreasing during the course of the year, one is not absolved of giving one's Zakah. However, if his entire wealth is lost and he finds it later, then the beginning of the year will be calculated from the time that he finds his wealth. (The period prior to that will not be calculated).
3. A person possessed the nisaab but prior to the expiry of one year all his wealth is lost and it was not in his possession for the complete year. In such a case Zakah will not be wajib.
4. A person possesses the full nisaab and also has debts which equal the nisaab. In such a case Zakah will not be wajib.
5. If his debts are such that if he were to fulfil his debts he will have a remainder of wealth which will equal the nisaab, then Zakah will be wajib on him.
6. Zakah is wajib on jewellery, utensils, ornaments, and brocades that have been made with gold or silver. This is irrespective of whether these items are in use or not. In other words, Zakah is wajib on everything that is made of gold or silver. However, if they are less than the nisaab, Zakah will not be wajib.
7. If the gold or silver is not pure but has been mixed with another metal, then one will have to check as to which is more in content. If the gold or silver is more, then the rules which are applicable to both will apply here as well. That is, if they equal the nisaab, Zakah will be wajib. If the content of the other metal is more than that of the gold or silver, it will not be regarded as gold or silver. The rules that apply to brass, copper, steel, tin, etc. will also apply to this metal. These rules will be discussed later.
8. A person does not have the complete nisaab of gold nor of silver. Instead, he has a bit of gold and a bit of silver. If both are added together and their value equals the nisaab of gold or silver, Zakah will be wajib. But if they do not equal the nisaab of either gold or silver after adding them together, Zakah will not be wajib. If the nisaab of gold or silver is complete, there is no need to obtain their value.
9. Assuming that the price of 11.664 grams of gold is R25, and for R1 we can get 17.496 grams of silver and a person possesses double this amount of gold (i.e. 23.328 grams) plus R5 both of which is over and above his needs. Furthermore, he has this gold and cash in his possession for a full year. In such a case, Zakah will be wajib. This is because the 23.328 grams of gold equals R50, and for R50 one can purchase 874.8 grams of silver (50x17.496g). In addition to this, if the R5 were to be added together, this will result in a lot of wealth upon which Zakah will be wajib. However, if he only possesses the 23.328 grams of gold and does not have any cash or silver; Zakah will not be wajib.
10. Assuming that we get 23.328 grams of silver for R1 and a person only possesses R30. Zakah will not be wajib and we will not calculate and say that R30 equals 699.84 grams of silver (i.e. 30 x 23.328 = 699.84) based on the fact that the rand is actually in place of the silver and when we only have gold or silver, then we will take the weight into consideration and not the value. (This rule will only apply when the coins used to be made of silver. These days, coins are made of copper and other cheap metals. We even receive them in return for currency notes. Now the ruling will be that the person who possesses coins or notes equal to the current value of the nisaab of gold or silver, Zakah on this will be wajib.)
11. A person had money equal to the nisaab which was over and above his needs. Prior to the expiry of the year, he received an additional amount. This additional amount will not be calculated separately. Instead, it will be added to the original amount and upon the expiry of the year, Zakah will be wajib on the entire amount and it will be regarded as if the original amount and the additional amount was in his possession for one full year.
12. A person had silver which was equal to the nisaab. Prior to the expiry of the year, he received an amount of gold (whether more or less than the amount of nisaab). This amount will not be calculated separately. Instead, it will be added to the original amount of silver and Zakah will be wajib on the total amount upon the expiry of that year.
13. With the exception of gold and silver, the rule regarding all other metals such as steel, copper, brass, etc., the utensils that are made of these metals, clothing, footwear, and all other such items is that if these items are for the purpose of trade, Zakah will be wajib on them if they reach the nisaab of either gold or silver and are in the possession of the person for a period of one year. However, if these items do not reach the nisaab, Zakah will not be wajib. If these items are not for the purpose of trade, Zakah will not be wajib irrespective of the amount one possesses. Even if the value of these items reaches thousands of rands, Zakah will not be wajib as long as they are not for the purpose of trade.
14. Zakah is not wajib on household effects such as utensils, pots, big pots, trays, basins, crockery and glassware, the house in which one lives, the clothes which one wears, jewellery made of pearls, etc. This is irrespective of the amount and irrespective of whether they are being used daily or not. However, if they are kept for the purpose of trade, Zakah will be wajib on them as well. In short, Zakah is not wajib on all items apart from gold and silver if they are not for the purpose of trade. But if they are for trade, Zakah will be wajib on them as well.
15. A person owns several homes from which he collects rent. Zakah is not wajib on these homes irrespective of their value. Similarly, if a person purchases some utensils and hires them out, Zakah will not be wajib on these utensils. In short, by hiring or renting something out, Zakah does not become wajib on that thing.
16. Zakah is not wajib on clothes irrespective of how expensive they may be. However, if they are embroidered with gold or silver thread and if this thread were to be removed and weighed it will be equal to the nisaab, then in such a case Zakah will be wajib. But if it does not reach the nisaab, Zakah will not be wajib.
17. A person possesses some gold or silver, and some goods for trade as well. All these will have to be calculated together. If they reach the nisaab of either gold or silver, Zakah will be wajib. If they do not reach the nisaab, Zakah will not be wajib.
18. Goods for trade will only be regarded as such if they have been purchased with the intention of re-sale. If a person purchases some rice or any other item for his domestic needs or for a wedding, etc. and thereafter decides to sell this item, Zakah will not be wajib on this.
19. Zakah is also wajib on the money that is owed to a person by his debtors. Debts are of three types:
    1. The First Type: The person loaned some gold, silver or money, or sold some tradeable goods to another person. He is owing this money and only repays his debt after a year or two. If whatever he loaned is equal to or more than the nisaab, Zakah will be wajib for all the years that he had loaned the money.
       1. He did not repay the debt at once, but in instalments. The moment he pays an amount equal to the value of 128.304 grams of silver, Zakah will become wajib on him. But if the person repays the value of 128.304 grams of silver in instalments as well, Zakah will only become wajib on the completion of this amount. Each time that this amount is paid, Zakah on it will have to be given. Whenever the person gives the Zakah, he will also have to pay for all the previous years in which the Zakah was not paid.
       2. If the money owed is less than the nisaab, Zakah will not be wajib on the person. However, if the person has some other wealth upon which Zakah is necessary, then this wealth should be added to the money owed. If, after adding them together, they equal the nisaab, Zakah will be wajib on the total amount.
    2. The Second Type: A person did not loan any cash nor did he give (on credit) any goods for trade. Instead, he sold something which was not originally purchased for re-sale, eg. he sold some of his personal clothing or some household goods, and the person is still owing him the money for these items. In addition to this, the amount that he is owing is equal to or more than the nisaab and he only repays this amount after several years. Zakah will be wajib for all the years. If he does not repay this debt at once, but repays it in instalments, then as long as the paid up instalments do not reach the current nisaab of silver or gold, Zakah will not be wajib on the amount that he collected. The moment an instalment reaches the current nisaab, Zakah becomes wajib for all the years in which Zakah was not paid.
    3. The Third Type: The husband owes his wife the mahr (dowry) which had been stipulated at the time of marriage. He only pays this mahr after several years. Zakah will only be calculated from the day that she actually receives her mahr. Zakah for the previous years will not be wajib. If the mahr remains with her for a period of one year after having received it, Zakah will become wajib on her upon the expiry of one year. But if she does not have the mahr (for example, if she spends it), Zakah will not be wajib.
20. A rich person upon whom Zakah is wajib gives his Zakah before the expiry of one year and does not wait until the end of the year. This is permissible and his Zakah will be considered to be fulfilled. But if the person is not rich and envisaged receiving some money in the near future, and therefore gave his Zakah before the expiry of the year, this Zakah of his will not be considered to be fulfilled. When he receives the money and thereafter a year passes, he will have to give his Zakah again.
21. It is permissible for a rich person to give Zakah for several years beforehand. But if his wealth increases in any given year, he will have to give Zakah for the extra wealth that he obtained.
22. A person has R1000 over and above his basic needs. He also envisages receiving another R1000 from somewhere. Before the expiry of the year, he gives Zakah for the total R2000. This is also permissible. However, if his money gets less than the nisaab at the end of that year, then Zakah will not be wajib on him and the Zakah which he had already given will be regarded as a voluntary charity (sadaqah-e-naafilah).
23. A person had some wealth for a full year but before he could give the Zakah, all his wealth was stolen or disappeared in some other way. He will be absolved from giving Zakah. But if the person gives his wealth away or causes it to be destroyed in some way or the other, then he will not be absolved from giving the Zakah. It will remain wajib upon him.
24. After the expiry of the year, a person gave all his wealth in charity. Zakah will not be wajib on him.
25. A person had R2000. After the expiry of one year, R1000 was stolen or he gave it in charity. He will be absolved from giving the Zakah of R1000. He will now only have to give Zakah for R1000.

The Paying of Zakah:

1. Upon the expiry of the year, Zakah should be given immediately. It is not a good habit to delay in carrying out good deeds because it is possible that death may overcome a person and this duty will still remain on his shoulders. If the paying of Zakah is delayed to such an extent that the second year also expires, the person will be a sinner but he can still repent for this sin and pay the Zakah immediately. In other words, he should pay the Zakah that is incumbent upon him at some time or the other in his life and should not leave it out.
2. Zakah is wajib on 1/40th of all the wealth which a person possesses. That is, R2-50 for every R100 or R1 for every R40.
3. At the time of giving the Zakah to a poor person, one must have the intention in his heart that he is giving this money as Zakah. If he merely gives it without making any intention, the Zakah will not be fulfilled. He will have to give the Zakah again, and he will be rewarded separately for the money that he had already given.
4. If the person did not make the intention of giving Zakah at the time of giving it to the poor person, then as long as that money is still in the possession of the poor person, he will be able to make the intention. By making the intention at this stage, his Zakah will be fulfilled. But if the poor person has already spent that money, then the intention that is made at this stage will not be considered. He will have to repeat the payment of his Zakah.
5. A person set aside R2 to be given as Zakah and decided that when he comes across a deserving person he will give it to him. However, when he gave it to the poor person he forgot to make the intention of Zakah. In this case, Zakah will be fulfilled. But if he did not make the intention of Zakah at the time of setting it aside, his Zakah will not be fulfilled.
6. A person has taken out his Zakah for distribution. He has the choice of giving all his Zakah to one person or distributing it among several persons. He also has the option of giving all the Zakah on one day or distributing it over several months.
7. It is better to give one poor person an amount which will be sufficient for him for that day so that he will not have to ask anyone else.
8. It is makruh to give one poor person an amount which makes the giving of Zakah wajib. However, if it is given, the Zakah will be fulfilled. It is permissible and not makruh to give an amount that is less than this.
9. A person comes to borrow some money and it is known that he is so poor and hard-pressed that he will be unable to fulfil this debt or that he is a very bad payer and never fulfils his debts. If the person gives him some Zakah money and also makes this intention in his heart that he is giving Zakah, then in such a case Zakah will be fulfilled despite the poor person regarding it as a debt.
10. If a poor person is given something as a gift, but in his heart the person has the intention of giving Zakah, even then Zakah will be fulfilled.
11. A poor person is owing you R10. You also have to pay Zakah for a sum of R10 or more. You forgave the poor person the R10 which he is owing you with the intention of it being Zakah. In such a case, Zakah will not be fulfilled. However, if you give him another R10 with the intention of Zakah, Zakah will be fulfilled. It will now be permissible to take this R10 from him as a fulfilment of his debt.
12. If a person has so much of silver in his possession that the Zakah on that silver amounts to 33 grams of silver and the market value of this 33 grams is two silver coins, then it is not permissible to give two silver coins in Zakah because these two coins do not weigh 33 grams. And if silver is paid in Zakah against silver goods, then the weight of the silver being paid is considered and not the price. However, in the aforementioned case, if gold, metal-base coins, clothing, etc. to the value of two silver coins is purchased and given as Zakah, or 33 grams of silver is paid as Zakah, then the Zakah will be fulfilled.
13. It is permissible for a person to appoint someone else to give the Zakah on his behalf. If the person to whom the money has been given does not make the intention of Zakah at the time of giving the money to a poor person, the Zakah will still be fulfilled.
14. You gave a person R2 to be given to another person as Zakah. However, this person did not give the very same R2 which you had given to him. Instead, he gave another R2 which was in his personal possession and thought in his mind that he will take the R2 that you had given him. Even in this case the Zakah will be be fulfilled. However, this is on the condition that your R2 is in his possession and he is now taking your R2 in place of his R2. But if he spends your R2 first and thereafter gives his own R2 to a poor person, Zakah will not be fulfilled. Alternatively, he has your R2 in his possession, but at the time of giving his R2 he did not make the intention of taking your R2 later. Even in this case, Zakah will not be fulfilled. He will now have to give R2 in Zakah again.
15. If you did not give him any money but merely asked him to give some Zakah on your behalf and he does this for you, the Zakah will be fulfilled. He should now take whatever amount he had paid from you.
16. If a person pays some Zakah on your behalf without your asking him to do so or without your permission, the Zakah will not be fulfilled. Now, even if you agree or accept his payment on your behalf, it will not be permissible. He does not even have the right to collect or ask you for that money.
17. You have given a person R2 to be given on your behalf as Zakah. This person has the choice of giving it to a poor person himself or asking a third person to give it on his behalf. When giving it to this third person he does not have to mention your name that this Zakah must be given on behalf of so and so person. If that person gives the money to a relative of his, or to his parents if he finds them in need, this is also permissible. However, if the person who was asked to distribute the Zakah is poor himself; he cannot take this money for his personal use. But, at the time of giving the money to him, if you told him to do whatever he likes with the money and that he could give it to whomsoever he wishes, it will be permissible for him to keep it for his personal use.

Zakah on Produce of the Land:

1. A particular place was in the control of the kuffaar. These kuffaar used to live there and lead their normal lives in that place. Thereafter, the Muslims invaded that place, waged war with the inhabitants, captured the place and propagated Islam therein. The Muslim ruler confiscated all the land of that place and distributed it among the Muslims. In the Shariah, such land is referred to as "ushri" land. If all the inhabitants of that place accepted Islam willingly and there was no need to wage a war against them, all the land of that place will still be regarded as ushri land. All Arab lands are also ushri lands.
2. If a person owns an ushri land which has come down to him from his forefathers or purchases it from a Muslim who inherited it from his forefathers, Zakah will be wajib on whatever produce that comes out of this land. The method of paying Zakah for such a land is that the person will have to see how the land was irrigated. If it was irrigated entirely by rain water or if the crops were planted on the banks of a river or stream and these crops grew without having to irrigate them, then one tenth of the total produce of such a plantation will have to be given as Zakah. However, if the plantation was irrigated through any other mechanical means, one twentieth of the total produce will have to be given as Zakah. The same rule applies to an orchard which is on such a land. This is irrespective of the amount of produce, i.e. Zakah will be wajib irrespective of whether the produce is of a considerable amount or very little.
3. The same rule applies to corn, vegetables, esculent vegetables, fruit, flowers, etc.
4. If honey is obtained from an ushri land, from the jungle or a mountain, Zakah on this honey will also be wajib.
5. A person planted a tree in his yard or planted vegetables or some other seed and later it bore some fruit. Zakah on such produce is not wajib.
6. An ushri land does not remain ushri when it is purchased by a kaafir. Later, if a Muslim repurchases it or obtains it in some other way, it will not become an ushri land.
7. This one tenth and one twentieth which we have mentioned, is it wajib on the person who owns the land or on the person who owns the produce of the land? There is a difference of opinion among the ulama in this regard. In order to facilitate matters, we generally say that it is wajib on the person who owns the produce of the land. If the land is given out on lease, Zakah will be wajib on the person who owns the produce. This is irrespective of whether he pays the rent in cash or gives some produce of the land as a form of payment. But if the seeds were provided by the land owner, Zakah will be wajib on both the land owner and the person who owns the produce according to their respective shares.

Zakah on Livestock:

1. The passing of one full year is a prerequisite for Zakah on all livestock.
2. Zakah is fard on livestock. Livestock refers to the animal in which the following factors are found:
   1. It must graze freely for a major portion of the year. It must not be fed in its stable. If it spends half the year grazing freely and half the year in it's stable; it will not be regarded as livestock. Similarly, if hay or straw is brought to its stable and it feeds on that hay or straw, it will not be regarded as livestock irrespective of whether this hay or straw was purchased or not.
   2. It must be kept for its milk, for the purpose of pro-creation, or in order to fatten it. If it is not kept for any of these purposes, and instead, is kept for its meat or as a means of transportation, it will not be regarded as livestock.
3. The prerequisite for Zakah on livestock is that it must be a camel, bull, buffalo, goat, or sheep. The female of each is also included. Zakah is not wajib on wild animals such as buck. However, if these wild animals are kept for the purpose of trade, then the Zakah of tradeable goods will be wajib on them as well. The animal that is born through copulation between a domestic animal and a wild animal will fall under the classification of its mother. That is, if the mother was a domestic animal, it will also be regarded as a domestic animal. But if the mother was a wild animal, it will also be regarded as such, e.g. if an animal is born from a buck and female goat, the animal will be classified as a goat. If an animal is born from a white antelope and a cow, the animal will be classified as a cow.
4. An animal which was from among one's livestock was sold during the course of the year with the intention of trade. Zakah will not have to be given on that animal for that year. The year for that animal will be calculated from the time that the person intended to use it for the purpose of trade.
5. There is no Zakah on young animals which are alone. However, if one is in possession of older animals together with younger animals, Zakah will be obligatory on both young and old animals. Furthermore, the Zakah itself will be paid with the older and not the younger animals. However, if the older animals die after the expiry of one year, Zakah will be waived.
6. There is no Zakah on animals which have been made waqf for the sake of Allah.
7. Zakah is wajib on horses which graze if both the male and the female of the species are together. One dinar per horse will have to be given. Alternatively, the value of all the horses should be calculated and one fortieth of the total be given as Zakah.
8. Zakah is not wajib on donkeys and mules if they are not for trade.

The Nisaab for Camels:

It should be remembered that Zakah becomes fard on five camels. If a person possesses less than five camels, Zakah will not be fard. In order to understand the Zakah on camels easily, the following table should be consulted:

1. If the number of camels is more than 200, the same method of calculation as has been followed from 150 onwards should be continued.
2. If a person possesses camels and gives a camel as Zakah, then this camel which he is giving as Zakah will have to be a female camel. However, if a male camel is of the same value as that of a female camel, it will be permissible to give a male camel.

The Nisaab for Cattle:

Bulls and buffaloes fall under the category of cattle. The nisaab for both is also the same. If the nisaab of cattle can be completed by adding both together, then both will have to be added and Zakah given accordingly. For example, if there are 20 bulls and 10 buffaloes, both will be added together thereby completing the nisaab of 30. However, when paying the Zakah, the animal that is more in number will have to be given. In other words, if there are more bulls, then bulls will have to be given. If there are more buffaloes, buffaloes will have to be given as Zakah. But if the buffaloes and bulls are equal in number, then the cheap animal of the category which is regarded as more valuable should be given or the expensive animal of the category which is regarded as less valuable should be given. The following table may be consulted for Zakah on cattle:

The Nisaab for Sheep and Goats:

As regards Zakah for sheep and goats, the nisaab for both is the same. If the number of goats and the number of sheep reaches the nisaab individually, the Zakah of both will be given together and the number of sheep and goats will be added together and Zakah given of the total number. If the number of each does not reach the nisaab, even then both will be added together in order to complete the nisaab. The animal that is more in number will be given as Zakah. But if both are equal in number, one has the choice of giving whichever one wishes. The following table may be consulted for Zakah on sheep and goats:

Who is Entitled to Receive Zakah?

1. The person who possesses the nisaab of either gold or silver, or trade goods which equal the nisaab of either gold or silver is regarded as a rich person in the Shariah. It is not permissible to give Zakah money to him. Nor is it permissible for him to accept or consume Zakah money. Similarly, the person who has belongings which are not for the purposes of trade but are over and above his basic needs, is also considered to be a rich person. It is not permissible to give Zakah money to such a person as well. Furthermore, although he is regarded as a rich person, Zakah is not wajib on him.
2. The person who has very little wealth or has no wealth at all to the extent that he does not have sufficient food for one day is regarded as a poor person. It is permissible to give Zakah to such a person. It is also permissible for him to accept Zakah money.
3. Large utensils, expensive carpets, etc. which are very occasionally used in weddings and other functions are not regarded as necessary items.
4. The following things are regarded as necessities of life: a house to stay in, clothes that are worn, slaves for domestic purposes, and furniture that is in use. If a person possesses these things, he will not be regarded as a rich person irrespective of the value of these items. It is therefore permissible to give Zakah to such a person. In the same way, the books and other essentials of a learned person are also included among the necessities of life.
5. A person owns several properties from which he receives rent. The income of these properties is used to run his own home. Alternatively, a person possesses a few cows from which he receives a certain amount of income. Despite this, he has a very large number of dependents whereby he cannot live a comfortable life and always finds himself in difficulties. Nor does he have any wealth upon which Zakah could be wajib. It is therefore permissible to give Zakah to such a person as well.
6. A person has R1000 in cash with him. However, he is also in debt for an amount of over a thousand rands. It is permissible to give him Zakah as well. However, if his debt is less than R1000, then this amount that he is owing will be subtracted from the cash that he possesses. Thereafter we will have to see whether the balance that he has is more than the nisaab of Zakah or less than it. If the balance is more than the nisaab, Zakah cannot be given to him. But if it is less, then Zakah can be given to him.
7. A person may be a very rich person at home. However, while on a journey, all his money got stolen or exhausted in some other way to such an extent that he does not even have sufficient funds to reach his eventual destination. It will be permissible to give Zakah to such a person. Similarly, a person who is travelling for hajj and who may be a rich person can also be given Zakah money if all his money gets spent.
8. Zakah cannot be given to a kaafir. It will have to be given to a Muslim. All forms of charity can be given to a kaafir except the following: Zakah, ushr, sadaqatul fitr, nazr, and kaffarah.
9. Zakah funds cannot be used for the building of a musjid, for the shrouding and burial of a deceased person, for the payment of debts on behalf of a deceased person, or for any other noble purpose. As long as Zakah is not given to the rightful person, it will not be considered to be fulfilled.
10. Zakah cannot be given to one's ascendents. That is, to one's parents, maternal and paternal grand-parents and even great grand-parents. In the same way, Zakah cannot be given to one's descendants. That is, to one's children, grand-children, great grand-children, etc. In the same way, the husband and wife cannot give Zakah to each other.
11. Apart from the above mentioned, it is permissible to give Zakah to all other relatives such as one's brothers, sisters, nephews, nieces, maternal and paternal uncles and aunts, step father or step mother, step grandfather, father-in-law, mother-in-law, etc.
12. It is not permissible to give Zakah to immature children if their father is rich. If the children are mature and poor, but their father is rich, it will be permissible to give Zakah to them.
13. If the father of an immature child is not rich but the mother is, it will be permissible to give Zakah to that child.
14. It is not permissible to give Zakah to the progeny of Hadrat Faatimah radiallahu anha, the progeny of Hadrat Ali radiallahu anhu, Hadrat Abbas radiallahu anhu, Hadrat Ja'far radiallahu anhu, Hadrat Aqeel radiallahu anhu, Hadrat Haarith bin Abdul Muttalib radiallahu anhu. Similarly, the charities which have been made wajib by the Shariah cannot be given to the progeny of the above Sahabah. Such charities are, nazr, kaffarah, ushr, sadaqatul fitr. Apart from these, all other charities can be given to them.
15. It is permissible to give Zakah to one's Muslim servants, workers, employees, etc. However, this Zakah should not be included in their wages or salaries. Instead, it should be given separately as a gift. At the time of giving this gift to them, one should have the intention in his heart that he is giving Zakah.
16. It is permissible to give Zakah to one's foster mother and foster children.
17. The mahr of a woman was fixed at R1000. However, the husband cannot fulfil this due to poverty. It will be permissible to give Zakah to such a woman. It will also be permissible to give Zakah to her if her husband is rich but refuses to give, or if she has absolved him from giving the mahr. If the woman knows that if she had to ask her husband for her mahr, he will give it to her without hesitation, it will not be permissible to give Zakah to her.
18. A person gave Zakah to another person thinking that he is poor. Later, he learnt that this person was rich or he was a sayyid. Alternatively, he gave it to someone on a dark night and later realized that the person to whom he had given the Zakah was actually his mother or daughter, or any other relative to whom Zakah is not permissible. In all these cases, Zakah will be considered to be fulfilled and there will be no need to repeat the payment of Zakah. However, if the person to whom the Zakah was given learns that this was actually Zakah money and that he is not eligible to receive Zakah, he should return the Zakah money. If the person who gave the Zakah learns that the person to whom he had given the Zakah was actually a kaafir, he will have to give Zakah again.
19. A person has a doubt as to whether a certain person is rich or poor. Zakah should not be given to him until it has been ascertained whether he is eligible to receive Zakah or not. If Zakah is given to him without ascertaining his financial position, the person should check with his heart and see to which side his heart is more inclined. If his heart tells him that the person is poor, Zakah will be fulfilled. If his heart tells him that the person is rich, Zakah will not be fulfilled and will therefore have to be repeated. But if he establishes the fact that he is indeed a poor person after having given the Zakah to him, then he does not have to give the Zakah again.
20. At the time of giving Zakah and all other forms of charity, one should first take one's relatives into consideration. However, when giving them this Zakah, they should not be told that it is Zakah so that they do not feel offended. It is mentioned in the Hadith that by giving charity to one's relatives one receives a double reward - one reward for giving charity, and one for showing kindness to one's relatives. After giving the relatives, if there is any remainder, it should be given to outsiders.
21. It is makruh to send the Zakah of one place to another place. However, it will not be makruh to do so in the following instances: (1) if one's poor relatives live at another place, (2) the inhabitants of that place are more deserving than the inhabitants of this place, (3) the inhabitants of that place are more involved in deeni activities. There is great reward in sending Zakah to students of deen and pious ulama.

Miscellaneous Masa'il on Zakah:

1. If a person mixes his halaal wealth with haraam money, Zakah will have to be given on the total amount.
2. If a person passes away without paying the Zakah which was wajib on him, Zakah will not be taken from his wealth. But if he makes a bequest that his Zakah must be paid from his wealth, then this Zakah will be taken from one third of his wealth irrespective of whether this one third will be sufficient for the payment of his Zakah or not. If his inheritors agree to give from the balance of his wealth (i.e. more than the one third), it will be permissible to take from this balance according to the amount that the inheritors specify.
3. If the creditor forgives his debtor from paying his debt after the expiry of one year, the creditor will not have to pay Zakah on this money for that year. However, if the debtor is a rich person, the creditor's forgiving him will be regarded as if he is destroying his wealth. The creditor will therefore have to give Zakah on this wealth. This is because the destroying of Zakahable wealth does not absolve one from paying Zakah.
4. The giving of optional charities is only mustahab when one's wealth is over and above one's necessities and the necessities of one's family members. If it is not so, it will be makruh to give optional charities. Similarly, it is also makruh to give all one's wealth to charity. However, if the person has full conviction on his trust in Allah Ta'ala and on his ability to exercise patience and there is no possibility of any harm befalling his family, it will not be makruh to do so. Instead, it will be better to give all his wealth in charity.

http://www.darulihsan.com/index.php/q-a/fatwa-q-a/zakat-charity/item/5228-zakah-guidelines-hanafi

Zakah is Fardh (compulsory) upon every sane adult Muslim (male and female) who possesses net-Zakatable assets (i.e. Zakatable assets over and above one's basic needs minus liabilities) to the value of Nisab (minimum threshold) for one's Zakatable (lunar) year.

 Zakatable Assets

1. Gold and Silver: All forms of gold and silver, jewellery that contain 50% or more gold and silver content, gold and silver coins (e.g. Kruger coin), gold and silver ornaments, utensils, etc. Zakah is compulsory on these items whether these are in use  or not.

2. Cash: Petty cash, float, cash on hand, cash at the bank, foreign currency, saved income from rental/property investments, dividends from investments, lump sum payouts, etc.      

3. Stock in Trade: Stock, raw materials, redundant stock, assets purchased with the intention of resale. (The market-rated value of the stock will be considered.)

4. Receivables: Debtors, loans, deposits (municipal, rental), insurance, voluntary pension/provident funds, retirement annuities, etc.                         

5. Shares/Unit Trusts/Partnership: The net Zakatable assets of the company/fund/ partnership will be considered and Zakah is payable pro rata of one's investment/ shareholding. However, calculating one's Zakah of the listed company share or unit trust maybe cumbersome. Therefore, one may pay Zakah on the full market value of the investment.           

The Zakatable rate for all the above-mentioned assets is 2.5%

6. Livestock: Livestock such as: goats, sheep, cows, bulls and camels for breeding purposes. The local Ulama should be consulted with regard to what amount of Zakah is due on them. Livestock for trade purposes is treated as stock in trade.                                                                  

Non-Zakatable Assets

1. Metals other than gold and silver such as platinum, titanium, etc.

2. Property, Land and Building

3. Household effects, fixtures and fittings

4. Motor vehicles

5. Personal effects (that are not gold/silver)

6. Diamonds, pearls and other precious or semi
precious stones

N.B. If any of the above assets are purchased for resale then these shall be regarded as stock in trade and calculated as Zakatable assets.

Nisab and Rate of Zakah

The minimum amount of Zakatable wealth (threshold) which makes one liable for Zakah is called Nisab.

The Nisab of gold is 87.48 grams and silver is 612.36 grams. Hence, if a person only owns gold which is less than 87.48 grams then Zakah is not compulsory since he is below the threshold of Zakah. Similarly, if a person only owns silver which is less than 612.36 grams then Zakah is not compulsory.

However, if a person owns any Zakatable asset together with gold or silver then the applicable Nisab would be the value of 612.36 grams of  silver.

The equivalent Rand value of this fluctuates daily. This may be obtained from your local Ulama body.

Debts and Liabilities

The classical juristic texts state that all debts are regarded as deductible liabilities of Zakah. However, some contemporary jurists differentiate between the types of debts, e.g. debts which are for commercial expansion or investment purposes and personal debts that are basic, whilst others do so based on the term of repayments of short term and long term debts.

Darul Ihsan is of the view that in long term loans, only the next twelve months instalments due will be considered a liability and deductible.

The Zakatable Year

1. The Zakah year is based on the Hijri (lunar) calendar and not on the Gregorian (solar) calendar.

2. The very first day a person possesses wealth equivalent to the value of Nisab heralds the beginning of his/her Zakatable year.

3. Should Nisab enter one's  possession and remain with oneself for the entire lunar year, then one will be liable to pay Zakah, irrespective of the fluctuations during the year provided the net-value had not reached zero.

Hence, at the year-end Zakah is paid on the entire value of the net Zakatable assets in one's possession - though some assets may not be literally in one's possession for the entire year including all assets and amounts acquired during the year.

If at any point during the year, the net-value of Zakatable assets reached zero or a person had more debts than Zakatable assets, the Zakatable year will change. The new Zakah year commences upon regaining the equivalent of Nisab.

Decrease in Wealth

If Zakatable assets are destroyed (without one's own doing), Zakah will only be paid on the remainder if a person's wealth gets destroyed after the year-end. However, if one destroyed the wealth deliberately or used up the wealth, Zakah will be payable in full.

Discharging of Zakah

1. It is necessary for the validity of discharging Zakah to have the intention of discharging Zakah.

2. This can be done in several ways: - intention is made when handing over Zakah to the recipient - or intention is made at the time of separating and setting aside money for discharging Zakat, - or the intention can be made after giving the wealth away, whilst the Zakat is still in the possession of the recipient, not after that.  

3. The condition for the validity of the discharge of Zakah is “Tamleek” – where ownership and possession of the wealth is transferred to the deserving recipient. Hence, Zakah cannot be given or used for the construction of a Masjid, Islamic institute, etc. nor can Zakah funds be used to prepare meals for the poor without giving them unconditional possession over the food.                                                                     

4. Zakah can be paid in cash or kind. Hence, one can discharge goods and consumable items as Zakah.                                                                         

5. Authority can be delegated to another person or an organisation to distribute Zakah on one's behalf. However, if this representative does not distribute the Zakah, or distributes it incorrectly then one's Zakah will not be discharged, and will still remain an obligation until it is fulfilled.

6. Zakah may be discharged gratuitously by another person provided this is done with the consent of the one who is obligated to do so. Hence, if the husband wants to discharge the Zakah of the wife gratuitously then he may do so with her consent.

Similarly another person may be requested to pay certain amount as Zakah on one's behalf. If this is undertaken then the amount given will then be a debt upon one and will have to be repaid.    

7. Zakah can be paid in advance. One must, however, calculate Zakah at the end of the Zakah year to determine whether there was any shortfall or not, and if so make good the outstanding amount.  

The rules and laws of Zakah are detailed. This brochure merely serves as a brief overview of the basic laws. Please refer to your local Alim/Mufti for further guidance.
And Allah Ta'ala Knows Best