Zakat is considered the third pillar of Islam and one of the most important obligations for Muslims who qualify. It is a form of financial worship that requires eligible Muslims to give 2.5% of their wealth to deserving categories of Muslims defined in the Quran. In this article, we will discuss the significance of Zakat and also recommend a Zakat Calculator that will help you calculate your exact Zakat obligation and help you pay Zakat online, without any delay.

What is Zakat

The word Zakat comes from ‘z-k-w’, which means purification. Islam places extraordinary importance on purification. Just as believers need to perform ablution before offering prayers, they are required to pay Zakat to ensure that their wealth remains spiritually blessed. However, it is also important to note that Zakat spiritually purifies wealth earned through rightful means.

The Zakat obligation isn’t new. The Quran clearly states that giving Zakat is obligatory:

“And establish prayer and give zakah and bow with those who bow [in worship and obedience].”(Surat Al-Baqarah, 2:43)

According to the following Hadith, Zakat is one of the most fundamental obligations:

“Narrated Ibn ‘Umar:

Allah’s Messenger (ﷺ) said: Islam is based on (the following) five (principles):

To testify that none has the right to be worshipped but Allah and Muhammad is Allah’s Messenger (ﷺ).
To offer the (compulsory congregational) prayers dutifully and perfectly.
To pay Zakat (i.e. obligatory charity) .
To perform Hajj. (i.e. Pilgrimage to Mecca)
To observe fast during the month of Ramadan.” (Sahih al-Bukhari, 8)

Who Must Pay Zakat?

Zakat is incumbent on any Muslim who owns wealth greater than the Nisab threshold. The Nisab value is equivalent to 612.36 grams of silver or 87.48 grams of gold. Simply put, Muslims who possess the required Nisab value or an equivalent amount of wealth must pay Zakat.

Zakat is an annual obligation and must be paid according to the Islamic lunar year.

When choosing Zakat standards, opt for the silver equivalent, as most Islamic scholars prefer it.

How to Calculate Zakat?

Once you have determined your Zakat eligibility, you can start calculating your Zakat obligation. Note that Zakat is calculated at 2.5% or 1/40th of the qualified wealth. While items of personal use are not included in the Zakat calculation, the following types of wealth must be included

Gold (jewelry also counts, whether in use or not)
Silver (all forms, including jewelry)
Cash in banks
Cash in hand
EasyPaisa/Jazz Cash/Other digital platforms
Investments
Loans given to others
Trade merchandise, including goods purchased for the purpose of selling
Money invested in the local committee
Rotating Savings and Credit Association/ local committees, etc

Once you have calculated the sum of your wealth, all you have to do is subtract your debt and short-term obligations from it. Finally, take the 2.5% of the remaining amount. That is your Zakat obligation for the year. Theoretically, calculating Zakat is a simple process; However, you may find all the additions and subtractions a little cumbersome. That’s where the Zakat calculator comes into play. You can use Transparent Hands’ Zakat calculator to easily reckon your Zakat obligation within minutes.

Once you have determined your annual Zakat obligation, it is time to give your Zakat to the most deserving individuals and families. Remember that Zakat cannot be given to anyone. Shariah principles allow you to make Zakat donations only to the categories of Muslims defined in the Quran. The principle for Zakat obligation is derived from the following Quranic verses:

“Zakah expenditures are only for the poor and for the needy and for those employed to collect [zakah] and for bringing hearts together [for Islam] and for freeing captives [or slaves] and for those in debt and for the cause of Allah and for the [stranded] traveler – an obligation [imposed] by Allah . And Allah is Knowing and Wise.” (Surat At-Tawbah, 9:60)

Hence, the following categories of people are eligible for your Zakat:

Al-Fuqara – poor people having low or no income.

Al-Masakin- people who have some possessions but not enough to support a day-to-day living.

Zakat Collectors — people nominated by an Islamic state to collect Zakat.

New Converts — People who converted to Islam recently.

People in debt — people unable to pay their debt.

For Fi Sabeelillah — people who dedicated their lives to the cause of Islam.

Wayfarers & Travelers — people who are traveling.

Those in captivity—people who are imprisoned or in captivity.

Pay Zakat Online

Note that Zakat has to be paid annually. Delaying the payment of Zakat is not allowed; it must be paid within the allocated year. Some Muslims like to pay their Zakat during Ramadan, but one cannot defer the Zakat payment until Ramadan. However, you can pay Zakat in advance for the next year.

Since paying Zakat on time and to the most deserving people is a priority, one can choose to pay Zakat online.

Making your Zakat donations online is convenient and safe. Besides, you can save lives by donating your Zakat to organizations like Transparent Hands, which assist deserving patients with medical treatment. If you are donating from the USA, you can also enjoy tax deductions by donating to a 501(c)(3) organization like Transparent Hands.

Why Donate Zakat to Transparent Hands?

While paying Zakat is one of the most important religious obligations, it is also an opportunity to contribute to society’s well-being. If Allah (SWT) has blessed you with resources, you must show your gratitude by spending your wealth in His way.

You can give your Zakat to support many great causes, but healthcare is a vital cause worth your attention. It not only positively affects an individual but uplifts an entire family, and its cumulative effect positively influences the entire society.

Healthcare is one of Pakistan’s most pressing issues. Transparent Hands is an online crowdfunding platform that has been working hard to fill gaps in Pakistan’s healthcare system. They have assisted thousands of underprivileged Pakistanis since their inception in 2014. They have a powerful maternal and child healthcare program that has benefited thousands of young women and their children. They also support many free surgeries and medical procedures, including neurosurgery, ENT, gynecology/obstetrics, urology, orthopedics, pediatrics, and general medicine. Transparent Hands also organizes medical camps that provide free medical checkups, tests, and medicines to people living in low-income areas. These camps are organized and managed by expert doctors, paramedics, and staff.

Transparent Hands is a Shariah-compliant organization that collects and spends donations in accordance with Islamic principles.

Transparent Hands’ online Zakat calculator lets you calculate your Zakat, and their online forums share complete profiles of patients you can support. You can pay Zakat online through their forum and assist them in changing lives.