Zakat: The measure of Social Welfare

Salim Desai
Sunday, June 14, 2015

As Holy month of Ramadan begins, most of the Muslims are busy with complying one of the most important tenets of Islam for social responsibility called “Zakat.” As Ramadan is holy month, any good deed is more rewarding hence Muslims take this opportunity to calculate & pay Zakat during the Ramadan.

What is Zakat?: Zakat is compulsory charity by Muslim on his wealth on set proportion. It’s purification of his wealth from sins. It’s calculated @2.5% on Zakatable wealth after certain threshold (Nisab) amount. Usually it is calculated on annually based on lunar calendar.

Social Welfare: Social justice & welfare are most sought human values in modern world. It’s virtue of modern nations. Historically, all civil movements were mobilized for those two principles. Developed & undeveloped countries are finding out the ways to bring social justice through social welfare.

The world is progressing with limitless horizons but it’s very painful to see extreme inequality of income & resources among the individuals & nations. The gap between the rich & poorer is widening. This is leading towards widespread poverty, deprivation of human life & right to live with dignity. Modern Governments are trying to address these problems through social welfare measure based on taxation system whereby they can take from rich & will distribute among the needy by various schemes. (MNREGA is a classical example in Indian context.)

Zakat is powerful measure of social welfare introduced by Islam before 1400 years. In fact, more than a religious obligation, Zakat plays important role against concentration of wealth with minority creamy segment of society with spiritual dimension of purification of soul, avoidance of greed & avarice. It’s of paramount importance in helping poor & needy in their financial difficulties.

The wider scope for determining the zakatable wealth is bringing more Muslims in ambit of Zakat which is reducing hoarding in non productive assets & it’s hard to escape from eligibility.
Following are major Zakatable class of assets:
-The gold and silver, precious stones & metal or ornaments made of such things
- The money kept at home or in bank accounts;
- Equities and units acquired directly or through investment funds;
- Movements in market values and exchange;
- Agricultural products;
- Herds of animals like cows, oxen, goats, sheep and camels;
- Mining products;
- Pensions;
- Property acquired for investment.

Beneficiaries of Zakat: The wider scope of beneficiaries covers objectives of modern social welfare measures, which are as follows:
-The Poor – who don’t have sufficient means to survive.
- The needy people: who have short of income to meet needs
- Administrators & collectors
-Sympathizers & well wishers of Islam
- Release of captives
- Charities in the name of God for deprived; mostly for medical & educational purpose
-Relieve the debt ridden
-Distressed travelers

WHEREAS IT MUST BE NOTED THAT ZAKAT IS NOT ACCEPTABLE FOR THE DEPENDENTS LIKE PARENTS, GRNAD PARENTS, WIFE, CHILDREN & GRAND CHILDREN BECAUSE THEY ARE MUSLIM’S PRIME RESPONSIBILTY. So this ensures family bonding & commitment.

ALSO ZAKAT IS NOT PERMISSSABLE FOR CONSTRUCTION OF MOSQUES SO THAT MONEY WILL COME INTO THE REAL CHARITABLE PURPOSE.

So from above scope, beneficiaries & non allowances it’s very obvious that it’s Social Welfare measure with spiritual dimension.

If Zakat is properly collected & distributed among the rightful beneficiaries, it will reduce the inequality in society considerably.

Salim Desai is Chief Financial Officer (CFO) with Al Razzi Holding Co KSC. He holds MBA, CMA, CIPA and also passed CPA. He is an expertise in Finance analysis and Investments and passionate educationist.
View Profile

Express your comment on this article

 
JAHAN
Posted on Friday, March 31, 2017

Respected reader .I would like to ask.iam a signal I don't any support to do .no job I doen B.com and Bussiness management .but no use this jahan from india if got any donation from agolden heart bussiness man realy iam thankful to him till my life end

Submit your comments...
     
Disclaimer: The views expressed here are strictly personal and IndiansinKuwait.com does not hold any responsibility on them. We shall endeavour to upload/publish as many of the comments that are submitted as possible within a reasonable span of time, but we do not guarantee that all comments that are submitted will be uploaded/published. Messages that harass, abuse or threaten other members; have obscene, unlawful, defamatory, libellous, hateful, or otherwise objectionable content; or have spam, commercial or advertising content or links are liable to be removed by the editors. We also reserve the right to edit the comments that do get published. Please do not post any private information unless you want it to be available publicly.
Image

Teamwork Makes The Dream Work! – Nomaan Sidiq Budroo, Captain of Kuwait U-19 Cricket Team

Kuwait Cricket’s National U 19 team returned home after their best ever performance in the ICC U 19

Image

A Walk in the Garden…

Our garden in Salmiya is an exciting learning-place… Every walk in it, teaches something every time

Image

Take Thoughts Outside Box

"Where are the songs of spring? Ay, where are they?’’ I sighed, when others were busy with Keats, S

Image

‘Be what you are, Do what you can’, a self-confident go getter, N.K. Ramachandran Menon

He believes, ‘No one can influence anyone’. He believes, ‘I can only be me and it is true for ever

Image

How to carry out a winning scientific project?

I have been involved in judging scientific projects in schools and colleges for the past three deca

Image

Extraordinary artist of ribbon work – Mrs Poornima

Hand Embroidery is one of the most beautiful artworks. There are variety of Embroideries which uses

Image

Work hard, but enjoy your job – Ravi Varrier spending 40 years in a company!

Spending long working years with a company may not be a big deal if you are a sincere employee. But

Image

Smart Investing - Diversification is the Mantra: Don’t keep all the eggs in one basket

Investment is an activity which everyone should be involved once they start earning. But where to i

Image

They are disconnecting…

“Why do I need to learn about India? After all, I am going to live here—in Kuwait—all my life… I wa

Image

I Learn Anew Every Day - Kevin Mathew

Kevin Mathew was the youngest (and only Indian) TEDx speaker at TEDxAlShuwaikh, Kuwait, on Septembe

Image

New Menu at Zafran Puts Contemporary Spin on the Traditional

Fans of Zafran can rejoice as the popular Indian bistro launches a new menu this week. The front

Image

A nostalgic and delicious train journey in Kuwait at Kerala Express Restaurant

A train journey during our annual vacation in India is definitely a nostalgic experience for many o

Image

Mughal Mahal Exotica - An aromatic and exotic twist to Indian food

When it comes to Indian food in Kuwait, no doubt ‘Mughal Mahal’ set an example among the residents

Image

Experience Indian Corner Tandoori Nights at Al Manshar Rotana Hotel

Al Manshar Rotana Hotel at Fahaheel, Kuwait launched an authentic Tandoori Night with an Indian cor

Image

Maharashtra Mandal Kuwait Cricket Premier League and Photography Contest Kicked-Off

Maharashtra Mandal Kuwait is organizing “MMK Cricket Premier League 2018 Season- 3”. The event wi

Image

United Goans Centre Interschool Under-15 Football Tournament 2018

The United Goans Centre (UGC) held its Inter-school under-15 football tournament on 3rd February 2

Image

BOUBYAN bank Crowned Champions in the Cup Finals KFH Grabs the Plate Trophy

On the weekend of 27th January, Kuwait Cricket held the grand finals upon the completion of all the

Image

Saina Nehwal, P.V. Sindhu and the men's doubles pair

Saina Nehwal, P.V. Sindhu and the men's doubles pair of Satwiksairaj Rankireddy and Chirag Shetty a

Image

Prannoy, Saurabh guide Ahmedabad to PBL-3 semis

H.S. Prannoy powered Ahmedabad Smash Masters to a brilliant 4-1 victory over Mumbai Rockets, to adv