Book of Zakat

Zakat of Currency and Debt

زَكَاةِ الأَثْمَانِ

The Book of Dhihar

Glossary


Zakat of Currency and Debt

There are two kinds of currency: gold and silver. There is no zakat on silver 493 until it reaches two hundred dirhams [about 595 g of pure silver], and its zakat is five dirhams [2.5%]. There is no zakat on gold until it reaches twenty mithqâl [about 85 g of pure gold], and its zakat is half a mithqâl [2.5%]. 464

وَهِيَ نَوْعَانِ: ذَهَبٌ وَفِضَّةٌ، وَلاَ زَكَاةَ فِي الْفِضَّةِ حَتَّى تَبْلُغَ مِائَتَيْ دِرْهَمٍ، فَيَجِبُ فِيْهَا خَمْسَةُ دَرَاهِمَ، وَلاَ فِيْ الذَّهَبِ حَتَّى يَبْلُغَ عِشْرِيْنَ مِثْقَالاً، فَيَجِبُ فِيْهِ نِصْفُ مِثْقَالٍ.

If the silver or gold is impure, there is no zakat until the weight of the pure amount of gold or silver reaches the niṣâb. If there is any doubt about its purity, there are two options: to pay the zakat [on the amount as it is] or to first purify it by casting it, in order to determine the actual amount.

فَإِنْ كَانَ فِيْهِمَا غِشٌّ، فَلاَ زَكَاةَ فِيْهِمَا حَتَّى يَبْلُغَ قَدْرُ الذَّهَبِ وَالْفِضَّةِ نِصَابًا، فَإِنْ شَكَّ فِيْ ذٰلِكَ، خُيِّرَ بَيْنَ الإِخْرَاجِ وَبَيْنَ سَبْكِهِمَا؛ لِيَعْلَمَ قَدْرَ ذٰلِكَ.

493. Cash Is a Substitute for Gold and Silver

Cash takes the same ruling as gold and silver, here and in the chapter on usury, since cash is used by people nowadays as currency, and it was instituted as a replacement for gold and silver, even if it is no longer tied to a gold reserve.

494. Should gold and silver be added together if each one is less than the niṣâb?

(A): Yes. If you have 3/4 of the niṣâb of gold and 1/4 of the niṣâb of silver, you should pay the zakat. Since cash is treated like another currency, it should also be added to them. (a) + (-S): No.

[ Zakat of Permissible Jewelry]

There is no zakat on permissible jewelry that is prepared for personal use or lending.
495

وَلاَ زَكَاةَ فِي الْحُلِّيِّ الْمُبَاحِ، الْمُعَدِّ لِلاِسْتِعْمَالِ، وَالْعَارِيَةِ.

All kinds of gold and silver that are customarily worn by women are

وَيُبَاحُ لِلنِّسَاءِ كُلُّ مَا جَرَتْ عَادَتُهُنَّ بِلُبْسِهِ مِنَ الذَّهَبِ

495. Gold and Silver Jewelry

(A) + (+M, +S): Zakat is not mandatory on such jewelry. (-H, -Z): Zakat is mandatory on it. They argued that ‘Â’ishah (RAH) said:

The Messenger of Allah (SA) came to me, and I was wearing ‘big’ rings of silver on my hand. He asked, “What is this, ‘Â’ishah?” I said, “I made them to adorn myself for you, O Messenger of Allah.” He asked, “Have you given zakat on them?” I said no. He said, “They are sufficient to make you deserve the punishment of fire.” (D. al-Albâni:S)

دَخَلَ عَلَيَّ رَسُولُ اللَّهِ  فَرَأَى فِي يَدَيَّ فَتَخَاتٍ مِنْ وَرِقٍ، فَقَالَ: مَا هَذَا يَا عَائِشَةُ؟ فَقُلْتُ: صَنَعْتُهُنَّ أَتَزَيَّنُ لَكَ يَا رَسُولَ اللَّهِ. قَالَ: أَتُؤَدِّينَ زَكَاتَهُنَّ؟ قُلْتُ: لا. قَالَ: هُوَ حَسْبُكِ مِنْ النَّارِ.

There are other hadiths with the same meaning, but they are all controversial. At-Tirmidhi said nothing is authentically traceable to the Prophet (SA) in this regard. Some consider them established, particularly because they corroborate one another. (-H, -Z) also used the generalities that establish zakat in gold and silver.

The majority argued that ‘Â’ishah herself and Ibn ‘Umar did not pay zakat on the jewelry of their dependents. In fact, Imam Aḥmad said that Anas, Jâbir, ‘Â’ishah, Ibn ‘Umar, and Asmâ’ (RAHUM) all denied that zakat is binding on jewelry. They also said that the ongoing principle is that all property for personal use is not zakatable. Finally, they raised concerns about the transmission of the reports used by (-H, -Z), arguing that, if established, they may have meant that the Prophet (SA) wanted to discourage extravagance because the reports mention ‘big’ rings and ‘fat’ bracelets.
This is a controversial issue, with proofs almost equally strong on both sides. If a woman buys a large amount of gold with the intention of saving it, and she wears it infrequently, then it is closer to piety for her to pay zakat on this gold.

permissible for them, and the permissible silver items for men are: rings, ornamentation of swords, belts, and so on. There is zakat on what [gold and silver] is prepared for renting and savings, as well as on the prohibited kinds. 496

وَالْفِضَّةِ. وَيُبَاحُ لِلرِّجَالِ مِنَ الْفِضَّةِ: الْخَاتَمُ، وَحِلْيَةُ السَّيْفِ، وَالْمِنْطَقَةُ، وَنَحْوُهَا. فَأَمَّا الْمُعَدُّ لِلْكِرَاءِ وَالاِدِّخَارِ، أَوِ الْمُحَرَّمُ، فَفِيْهِ الزَّكَاةُ.

496. For example: gold and silver utensils, or gold jewelry for men.

Chapter on the Rulings of the Zakat of Debt

بَابُ حُكْمِ الدَّيْنِ

[For Creditors]

Whoever is owed a debt by a debtor who is capable of paying; has money he is capable of collecting, as when someone denies having borrowed it but he has proof; or has had something taken by force from him, yet he is capable of taking it back; he must pay zakat for it when he finally takes possession of it. He should do so for all the years that have passed. 497

وَمَنْ كَانَ لَهُ دَيْنٌ عَلَى مَلِيْءٍ، أَوْ مَالٌ يُمْكِنُ خَلاَصُهُ، كَالْمَجْحُوْدِ الَّذِيْ لَهُ بِهِ بَيِّنَةٌ، وَالْمَغْصُوْبِ الَّذِيْ يَتَمَكَّنُ مِنْ أَخْذِهِ، فَعَلَيْهِ زَكَاتُه إِذَا قَبَضَهُ، لِمَا مَضَى.

If someone owns money that is impossible to retrieve because, for instance, [the debtor] has gone bankrupt or he denies the debt and there is no proof of it; or someone has had something taken from him by force or has lost something, and there is no hope of finding it; then there is no zakat due on it. 498

وَإِنْ كَانَ مُتَعَذِّرًا كَالدَّيْنِ عَلَى الْمُفْلِسِ، أَوْ عَلَى جَاحِدٍ، وَلاَ بَيِّنَةَ لَهُ بِهِ، وَالْمَغْصُوْبِ، وَالضَّالِّ الَّذِيْ لاَ يُرْجَى وُجُوْدُهُ، فَلاَ زَكَاةَ فِيْهِ.

497. Zakat on Money Lent

Recoverable Debt

(A) + (+H): The position above is the authorized position of the madh-hab.

(a) + (-M): When the money is returned to him, he should pay the zakat for 1 year.

In a different opinion by (a), which is reported from Ibn ‘Umar, ‘Â’ishah, and ‘Ikrimah, the lender does not have to pay zakat on this money until it is paid back and then one full lunar year has passed. This is because the individual does not have complete ownership of the money and cannot invest or spend it, so it is not prone to growth. (S): Zakat for it must be paid yearly.

498. Bad Debt

The ruling of the ṣadâq 499 is the same as that of debt. 500

وَحُكْمُ الصَّدَاقِ حُكْمُ الدَّيْنِ.

(a) + (-H, -s): The position chosen here by Imam Ibn Qudâmah concerning bad debts is the weaker position in the madh-hab. (A) + (+S): If he finally takes possession of it, he must pay zakat on it for all the years that have passed. (a) + (-M): If he finally takes possession of it, he should pay zakat on it for 1 year.

499. The obligatory bridal gift given by the husband to his wife at the time of marriage.

500.
Zakat on the Bridal Gift The bridal gift is either: deferred, paid, or due but not paid yet.

1- Any deferred amount: (A): When she finally takes possession of it, she must pay zakat on it for all the years that have passed. However, there are two other positions in the madh-hab. (t) was asked about the bridal gift of a woman who had been married for many years but was not able to ask her husband for it lest they separate. After many years, she was compensated for her bridal gift (by being given some real estate or the bridal gift). Does she have to pay zakat for the past years, or must she do so only after 1 year has elapsed since she took possession of it? He replied:

Praise be to Allah, there are many opinions concerning this matter among the scholars. The most correct opinion is the view of those who say that no zakat is due at all until one year has passed or zakat is due (for one year) once she takes possession of it. There is evidence for both views. The former is the view of Abu Ḥaneefah, and the latter is the view of Mâlik, and both are mentioned in the madh-hab of Aḥmad. Allah knows best.

The opinion of (H) ̶ that no zakat is due until 1 year has passed after she takes possession of it ̶ is applicable to our times, since it is the custom among most people that women do not ask for the deferred part of the bridal gift except when separating from the husband or upon his death.

2- Any amount that is paid to her: She pays zakat on it, even before the consummation of marriage.

[For Debtors]

Whoever has a debt equal to [or greater than] the niṣâb he owns, or it [the debt] makes it [the money he owns] less [than the niṣâb], there is no zakat on it [the money he possesses]. 501

وَمَنْ كَانَ عَلَيْهِ دَيْنٌ يَسْتَغْرِقُ النِّصَابَ الَّذِيْ مَعَهُ، أَوْ يَنْقُصُهُ، فَلاَ زَكَاةَ عَلَيْهِ فِيْهِ.

3- Any part that is due but has not yet been paid: It is treated like a debt. (See above for the rulings on debts.)

501. Zakat on Money Borrowed

After discussing the rulings of debts that pertain to creditors, Ibn Qudâmah (may Allah have mercy on him) mentioned the rulings that pertain to debtors. The debtors simply subtract their debts from their assets; if what remains is more than the niṣâb, then zakat must be paid on that remaining amount, but if what remains (after subtracting the debt) does not reach the niṣâb, then no zakat is due. By agreement, debts are subtracted from wealth that is not manifest. (Manifest wealth is that which is normally evident to the public, like livestock and crops.) As for manifest wealth, there is a disagreement. (A): Debts are subtracted except in the case of the zakat of treasure troves, from which debts are not subtracted.

Debts incurred to buy factory equipment or to purchase property that exists, as with home mortgages, will not be subtracted entirely as long as the value of the property is more than the amount of the debt. In this case, the part to be subtracted from the assets is the installment due during the current year. (This is the recommendation of the First Zakat Convention.)

Zakat of Currency and Debt

( Page : no 61)