Who is Obliged to Pay Zakat
Zakat must be paid by every Muslim who has a nisab (zakaha bracket), which is the minimum of one's holdings liable to zakat. The nisab is conditioned by the following:
Zakat should be paid on any amount of money remaining after meeting the expenses for such necessities as food, clothes, housing, vehicles and craft machines.
A complete year of Islamic calendar should pass, starting from the very day of the nisab's possession, without any decrease during the year. In case of its decrease (being less than nisab), the year count (hawl) starts from the day of the nisab completion.
Nisab (eligibility for zakat)
Zakat is payable at 2.5% of the wealth one possesses above the nisab.
Nisab or zakat bracket is equal to 85 grams (roughly three ounces) of gold.
Those who do not meet the nisab are not required to pay zakat.
For example: Let’s say the price of one ounce of gold on the last day of my zakat year (hawl) (some choose first of Shawwal to end of Ramadan as their zakat year) is $1,500. Three ounces of gold is $4,500 ($1,500x3). If my holdings, cash, assets, etc. are equal to or more than $4,500 then I am liable to pay zakat, otherwise one is not liable to pay zakat.
Please note, prices of gold change daily. Click here for an up-to-date price of gold.
Collection of Zakat
Zakatul Mal is collected and strictly distributed to the poor, needy, and any zakat eligible person or cause.
Zakat ul-Fitr or Fitra
Fitra is $12.00 per person per household
Zakat ul-fitr must be paid by every Muslim, young and old, male and female no later than the end of Ramadan. It is recommended that you pay it before Ramadan ends. The money collected goes to poor and needy people in our local community.
Zakat for Dawah
A portion of Zakatul Mal may be spent on dawah purposes as it falls in “In the Cause of Allah” category and scholars of Islam have approved this type of zakat. IONA separates the zakat due to the poor and zakat spent on dawah materials and programs.
Muslims who are eligible for zakat may request an application by writing to IONA, 28630 Ryan Rd. Warren, MI 48092, attention Naveed Ashraf, or by calling (586) 558-6900. You must submit supporting documents with the application. Applications are subject to approval by the Zakat Committee.