The ruling on zakat, and when it becomes obligatory

Rulings of Zakat 2. The Ruling on Zakah

(1) Zakah is an obligatory duty on every Muslim who is sane and of age (whether male or female).

(2) Denying the obligation of Zakah is considered disbelief.

(3) One who pays Zakah is righteous, but delaying it makes one sinful, and refusing to pay it makes one deserving of punishment.

Rulings of Zakat 3. Conditions for the Obligation of Zakah

The following conditions must be met for Zakah to be obligatory:

1. Being a Muslim: Zakah is not obligatory [Similarly, Zakat is not obligatory on someone who, after having the obligation of Zakat upon them, turns apostate.] on non-Muslims [If a non-Muslim becomes Muslim, he is not required to pay Zakat for the time of his disbelief.].
2. Being free: Zakah is not obligatory on slaves.
3. Being of age: Zakah is not obligatory on minors.
4. Being sane: Zakah is not obligatory on the insane, provided their insanity lasts for the entire year. However, if sanity returns for even a brief period, Zakah becomes obligatory.
5. Possessing the Nisab (minimum amount): If a person’s wealth falls short of the Nisab, Zakah is not obligatory [Provided that the wealth has been owned for a year, but wealth that is not possessed for a year, such as cucumbers, melons, etc., is not subject to Zakat.]. (Note): Nisab is the minimum wealth amount upon which Zakah is due.
6. Full Ownership: This means owning the full amount of wealth, including both land and property. If the land is not under the person’s control [This refers to wealth such as a dowry before it is in the possession of the person.], or if the wealth is not fully owned [This refers to debts owed by someone without the ownership of the wealth.], Zakah is not obligatory.
7. The wealth is in excess of basic needs [Basic needs of life are called primary needs.]: Zakah is not obligatory on items such as housing, clothing, household items, vehicles, service workers, and food for oneself and family. Also, Zakah is not obligatory on gold and silver jewelry or other luxury items unless used for trade [Zakat is not obligatory on items intended for trade.].
8. A person must not be in debt. If someone owns the nisab (minimum threshold for zakat) but has debts that, after repayment, would reduce their wealth below the nisab, zakat is not obligatory. This applies if the debt is such that its repayment can be demanded by people, whether the debt is owed to individuals (like money borrowed [Whether cash, in weight, or whether instantly or for a term.], compensation for damages [Meaning the cost of something purchased.], etc.) or to Allah (like unpaid zakat [Whether it's the Zakat on animals or cash (silver or gold) or trading goods. Note: In case of Zakat being in debt, for example, if someone owns only enough wealth to meet the minimum Zakat threshold but hasn't paid it for two years, only the first year's Zakat will be due. The second year's Zakat is not obligatory since the Zakat from the first year will remain as a debt, and after its deduction, the minimum Zakat threshold is no longer met.]). However, debts that cannot be claimed by people (such as vows, expiations, sadaqah of Eid, sacrifice, Hajj, etc [If after taking away the personal expenses from the threshold, the remainder is below the Zakat threshold, Zakat would still be obligatory.].) are not considered and do not prevent zakat. The wife's dowry (mahr) is also included in debts. If the dowry is mahr mu’ajjal (immediate payment), the husband is not liable to pay zakat until it is paid. If it is mahr muwajjal (deferred dowry) and has become due, zakat is not obligatory until it is paid. However, if mahr muwajjal is not yet due (as in the case of modern deferred dowries, payable only upon death or divorce), the husband is still liable to pay zakat despite the unpaid dowry. (Note) Debt prevents zakat if it existed before zakat became due. If the debt arises after one year of ownership of nisab, it has no effect, and zakat remains obligatory.
9. The nisab must be nami (growth-generating), either:

Actually growing, such as through reproduction or trade.

Potentially growing, by virtue of being under one’s control and capable of generating profit.

Each of these has two types:

Inherent growth, like gold and silver, which are naturally growth-generating.

Growth through human effort, like trade or livestock grazing.

For gold and silver, zakat is obligatory regardless of whether they are for trade or personal use, whether in raw form or as jewelry or utensils, as long as they meet the nisab. For all other items, including valuable items like pearls and gems, zakat is only obligatory if they are intended for trade and actively used for trade or grazing. The intention to trade must be present at the time of purchase. If the intention arises after purchase, it is only valid if trade begins. Conversely, if trade goods are purchased but later no intention to trade remains, they cease to be trade goods, and zakat is no longer obligatory. In summary, zakat is due on three types of wealth: cash (gold and silver), trade goods, and saima (grazing livestock).

1. A full year must pass on the wealth [According to lunar months.]. If the nisab is complete at the start and end of the year but decreases in between, this does not affect zakat—zakat remains obligatory. If someone acquires wealth equal to the nisab and during the year receives additional wealth of the same kind [Even if it is obtained just a day before the completion of the year.], this new wealth is added to the existing wealth, and zakat must be paid on the total without waiting for a new year. However, if the new wealth is of a different type (e.g., previously owned camels, and now sheep are acquired), it is not combined with the existing wealth, and a new year must be counted for it.

Note: It is permissible to pay zakat before the completion of one year, provided that the nisab remains intact throughout the year. However, paying zakat before acquiring nisab is not valid and will not count as zakat.