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The Conditions of Zakat
Islam: Being a Muslim
Freedom: It is not obligatory for slaves; because a slave does not have money, and it is noteworthy that slavery was abolished by Islam long ago.
Complete possession: This means that the owned money must be in the owner’s possession.
Growth: This means actual or potential growth and increase of money, like live stock by breeding, the plants that bear fruits, trade growth, and the money liable to growth, and the evidence for that is the Prophet’s saying: “A Muslim should not pay Zakat on his horse and servant.” Narrated by Al-Bukhari. Imam Al-Nawawi said: “This hadith is evidence that the money intended for immediate use is not liable to Zakat.
Surplus of money after meeting the basic needs: food, clothing, and housing for oneself and one’s wife, children, and dependents.
The elapse of one year: Elapse of one hijri year while the money is one’s possession and the evidence for this is the Prophet’s saying: “No Zakat on wealth until one year has elapsed.” [Narrated by Abu Dawood, Tirmidhi and Ibn Majah with a good attribution]. The exception are crops and fruits because an ayah reads: “And pay its right on the day of harvest.” [Al-An’am: 141], as well as the issue of live stock and the revenues of trade because the term for it is that of the capital:
Grazing: Grazing live stock without feeding, but in the case of feeding for most of the year, Zakat is not obligatory, due to the hadith: “For camels which graze freely; for every forty there must be offered a one-year-old camel.” [Sahih Ibn Khuzaymah], and in the letter of Abu Bakr, may Allah be pleased with him, saying: In the sheep grazing freely…..” [Al-Bukhari]. Zakat is conditional to free grazing.
Issues Related to the Terms and Conditions of Zakat:
Zakat for a debtor: Whoever is in debt and cannot repay it except from what he has in his hand, there will be one of two situations:
That the debt does not cause the nisab (least amount liable to Zakat) to be decreased, then it does not affect ZAKAT, and in this case he must pay the debt then pay zakat on the remaining amount.
That the debt does not cause the nisab to be decreased or used up, and in this case he must pay the debt and no Zakat must be paid.
Zakat for a Creditor: Concerning a creditor, there are two situations:
The debt is expected to be paid: This is when the debtor is well-off and is not procrastinating in the payment of the debt, then Zakat is obligatory on the creditor
The debt is expected to be paid: This is when the debtor is poor, or a well off person who is procrastinating. The preponderant opinion is that Zakat must be paid for all missing years when he receives the debt.
Ruling on the wealth of minors and the insane people: The majority of scholars believe that Zakat must be paid on the wealth of minors and the insane people because the ruling of Zakat is general. Umar also said: “You should seek growth for the orphans’ wealth so that it is not decreased because of Zakat.” It is proven that a group of companions were Aisha and Ali and the son of Omar
Ruling of the Zakat due on the funds of charities: These funds miss the condition of complete possession, so Zakat is not obligatory. This is the opinion of the majority of scholars.
Should the nisab amount remain the same from the beginning until the end of the year? This is an important issue when the nisab decreases during the year and whether this affects Zakat? There are many opinions concerning this issue, the most preponderant of which is that owning the nisab at the end of the year is the condition, and this was in the time of the Prophet where Zakat was paid at the end of the lunar year regardless of the decrease in the nisab. This is the view of Maliki and Shafi'i Schools, which is more prudent, and Allah knows best.