Guidelines

First Condition: Wealth must be from Zakat money, as not all types of wealth are subject to Zakat. Zakat is only due in four categories of wealth: 1. All types of funds: gold, silver and cash. 2. Trade offers: commodities created for sale and purchase for the purpose of making profit. 3. Agricultural Produce: crops and fruits 4. Livestock: Animals raised for commercial purposes, camels, sheep, goats, cattle and buffalo.3 The Committee issued its fatwa: “Zakat is obligatory on livestock, agricultural produce, cash, and trade offers.” (2262). Zakat is levied on the above wealth types because it generates growth and profit, helping the rich support the poor therefrom. Conversely, non-growing wealth (any wealth outside the abovementioned four types) is not subject to Zakat. Accordingly, Zakat is not levied on the following wealth categories: Assets intended for ownership and use, such as houses, cars, and clothes.4 Assets intended for lease, such as houses and cars. Houses and cars themselves are not Zakatable, but their rent revenues are, being money. If such money reaches Nisab (Quorum) on its own or by means of inclusion in other moneys and on which a full year elapses, then it is zakatable. Animals other than livestock, such as horses, chickens, and pigeons, and sea creatures such as fish, unless they are taken for trade. (3) Alejmaa For Ibn Almonther, Page45 (4 ) There is no zakaah on jewellery if it is essence or rubies in which there is no gold or silver, except that it is for trade. Alestinkar,9/75 2.2.1.1 Wealth falling under two zakatable categories If a single wealth falls under two of the four categories, is zakat paid once for both, or twice for both? An example is a Muslim individual owning sheep for trade; thus, such wealth is a part of the livestock and the trade offers. Answer: A wealth falling under two categories of the zakatable wealth shall be subject to only one type of Zakat. A livestock intended for trade and sale shall fall under the trade offers zakat only, and not the livestock Zakat.5