For an act of worship to be obligatory on an individual, certain conditions must be met. Similarly, there are specific conditions for Zakat to be obligatory. Some of these conditions relate to the individual, while others relate to financial eligibility.
A. Conditions Related to the Individual
1. Being a Muslim
The first condition for Zakat to be obligatory is that the individual must be a Muslim. Zakat is an act of worship that is specifically prescribed for followers of Islam. The Prophet Muhammad (peace be upon him) instructed his companions, such as Mu’adh ibn Jabal (RA), to invite people to Islam first. Only after they embraced Islam were they taught about religious duties, including Zakat. Non-Muslims are not obligated to pay Zakat in this world; however, on the Day of Judgment, they will be held accountable for not following the obligations of Islam.
2. Being an Adult and Sane
Just like in matters of prayer, fasting, and Hajj, Zakat is obligatory only on those who have reached adulthood and are of sound mind. If a person possesses wealth but is a minor or mentally incapacitated, their guardian or legal representative is responsible for fulfilling the Zakat obligation on their behalf. The Prophet Muhammad (peace be upon him) emphasized the importance of ensuring that wealth is used properly, stating that if someone manages another person’s wealth, they must ensure its proper utilization, including paying Zakat. While Zakat is not obligatory on children and mentally impaired individuals, some scholars, such as Abu Hanifa, suggest that their guardians should still manage their Zakat if necessary.
3. Having Sound Intellect and Awareness
Islamic teachings establish that Zakat is only obligatory on individuals who have full intellectual capacity and awareness. Those suffering from severe mental disabilities are exempt from this obligation. However, if such individuals own wealth beyond their needs, their guardians must fulfill the obligation of Zakat on their behalf. If someone temporarily loses mental capacity, such as in the case of a coma or cognitive impairment, they are also exempt from Zakat during that period. However, if they recover, they will be accountable for their financial duties from that point onward.
4. Being a Free Individual (Not a Slave or Bonded Laborer)
To be liable for Zakat, a person must be free and have full ownership of their wealth. A slave is not required to pay Zakat because they do not own any wealth independently; everything they possess belongs to their master. Since ownership is a fundamental criterion for Zakat, those who are not free are exempt from fulfilling this obligation.
5. Possessing Wealth Above the Nisab Threshold
Islamic law has set a minimum wealth threshold, known as Nisab, for Zakat to be obligatory. If a person’s wealth reaches this threshold, they are required to pay Zakat. The Nisab values are as follows:
- Gold: 7.5 tolas (approximately 87.5 grams)
- Silver: 52.5 tolas (approximately 612.35 grams)
- Camels: 5 camels
- Crops: 5 Wasak
- Sheep or Goats: 40 animals
- Cattle or Buffaloes: 30 animals
6. Complete Ownership of Wealth
For Zakat to be obligatory, one must have full ownership and control over their wealth. The person should have the authority to use and benefit from the wealth without any restrictions. If wealth is present but cannot be utilized freely, Zakat is not required. For example, if a donation is made for the construction of a mosque, orphanage, or other charitable purposes, and the ownership is transferred, then the donor does not have to pay Zakat on it. If money has been set aside in a specific fund and the person no longer has control over it, Zakat is not obligatory on that amount. However, if the ownership remains and the person can withdraw and use the money whenever they wish, Zakat must be calculated and paid accordingly.
7. Jointly Owned Wealth and Its Zakat Obligation
If an asset is jointly owned by two or more individuals, each owner is responsible for paying Zakat on their respective shares. If the total wealth of one owner does not meet the Nisab threshold, they are not required to pay Zakat. If one owner meets the Nisab but the other does not, then only the eligible owner is obligated to pay Zakat. After a financial period, all co-owners can assess their individual shares and decide whether they will pay Zakat separately or collectively.
8. Prohibited or Illegitimate Wealth
Wealth acquired through illegal or prohibited means is not subject to Zakat. Illegitimate earnings include income from theft, bribery, fraud, or other unethical practices. A person who earns unlawful wealth is required to return it to its rightful owner. If the rightful owner is unknown or cannot be located, the wealth should be donated to charity without the intention of receiving any reward. Zakat is not required on wealth acquired unlawfully because it is not considered legitimate ownership under Islamic law.
B. Conditions Related to Wealth
1. Wealth Must Be Surplus and Usable
For Zakat to be obligatory, a person’s wealth must be surplus, meaning it should be beyond their basic needs. Basic necessities such as food, clothing, shelter, and medical expenses are exempt from Zakat. However, any wealth that remains beyond these necessities and is not actively being used still requires Zakat to be paid. This includes stored wealth, business capital, and savings beyond daily necessities.
2. Wealth Must Be Held for One Full Year
A critical condition for Zakat is that wealth must be held for a complete lunar year before it becomes due. This applies to cash, gold, silver, business assets, and livestock. If wealth is gained and lost within a year without remaining stable, it is exempt from Zakat. However, certain types of wealth, such as agricultural produce, do not require a year to pass before Zakat is due. The Quran states, “Give its due on the day of harvest” (Surah Al-An’am: 141), indicating that crops must be assessed immediately after harvest. Similarly, livestock bred and raised for trade is assessed within specific time periods.
3. Wealth Must Exceed Basic Necessities
For Zakat to be obligatory, an individual’s wealth must exceed their essential living needs. Wealth that is used for survival, such as food, clothing, and shelter, is exempt. If a person’s wealth does not go beyond what is necessary for survival, they are not required to pay Zakat. The Prophet Muhammad (peace be upon him) stated that Zakat should be taken from the rich and distributed among the poor, emphasizing that only those who have wealth beyond their needs are liable for this obligation.
4. Growth Potential of Wealth
Wealth subject to Zakat must have the potential to grow or increase. This includes business profits, rental income, and investments that generate revenue. If wealth remains stagnant without any productive use, it may not be subject to Zakat. However, if it is stored for trade or investment purposes, it remains Zakatable.
Additional Considerations Related to Zakat Obligations
1. Zakat on Debtors
Before paying Zakat, individuals must first settle their debts. If a person has outstanding debts, they should clear them before calculating Zakat. The Prophet Muhammad (peace be upon him) advised that one should first repay their debts and then calculate Zakat on any remaining wealth. This ensures that Zakat is only paid from wealth that is fully owned and accessible.
2. Zakat on the Wealth of a Deceased Person
If a person passes away with outstanding Zakat obligations, it must be paid before distributing their inheritance.
3. Zakat on Wealth Held Abroad
Zakat is applicable to an individual's total wealth, regardless of whether it is in their home country or held abroad.
4. Zakat for Imprisoned or Missing Persons
If a person is imprisoned or missing, their obligation to pay Zakat remains if they own wealth that meets the Nisab threshold.
5. Zakat on Wealth of Refugees and Displaced Persons
If a person loses access to their wealth due to displacement, they are exempt from Zakat. If they regain access to their wealth in the future, they must calculate and pay any outstanding Zakat.