Aug
23
2011
0

Agency and Zakah

One is not obliged to distribute the Zakah by himself to the entitled recipients. He may validly appoint an agent (whether natural person or organization) to pay the Zakah on his behalf.

In appointing such an agent, the Zakah payer must bear in mind that the Zakah obligation is not discharged if the agent fails to distribute the Zakah to the entitled recipients. At the same time, possession of the Zakah amount by the agent will be deemed to be possessed by the principal (Zakah payer) as in the case of those organizations, who are guilty of serious maladministration by collecting Zakah and not distributing the same for a number of years without valid reason.

Aug
21
2011
0

Zakat on trading assets

Zakah is payable on trading stock if their market value is equal to or more than the value of nisaab.

Definition of trading assets

Trading assets are those, which are purchased with the intention of resale or capital gain. Consequently, goods that have been purchased for personal use and not for the purpose of trade are not subject to Zakah, irrespective of their value. Similarly, goods (other than gold and silver) originally bought for personal use are not subject to Zakah if the purchaser subsequently intends to sell them for trade and had not intended it at the time of purchase. Once sold, however, their sale price would be subject to Zakah.

Aug
19
2011
0

Zakatable Assets

Allah Ta’ala has put the most minimum burden of monetary obligations on Muslims so that paying Zakah becomes convenient for every sahib-un-nisaab Muslim.

Firstly, it is not obligatory to pay Zakah on every asset. Rather only those assets are the subject matter of Zakah that have the potential of growth or increase. These assets may be broadly classified as follows:

1- Trading assets.

2- Cash & Cash Equivalent (like prize bonds, Travelers Checks etc)

3- Gold and silver

4- Livestock (goats, sheep, cows and camels)

5- Agricultural output.

Jul
08
2010
0

Installment Sales Of Houses

Q. “The Fiqh Academy has also allowed installment sales. Does this mean that I can now buy a house in UK or USA on installments bearing in mind that each installment includes repayment of “principal” and “interest”.

A. Sale on installment should never be confused with a transaction of interest bearing loan. In a sale transaction subject matter of contract is a commodity which should necessarily be owned by the seller at the time of sale and should be in his possession. But in the case of loan the subject matter of the transaction is money which is advanced to the borrower. The house financing schemes generally practiced in the western countries are based purely on interest. The banks advance money for the purchase of the house and charge interest on it. The house is mortgaged as a security for the repayment of the loan. This transaction has nothing to do with a transaction of sale on installments.

Nov
01
2009
0

On Proceeding To Journey

(1) A ‘Hajj’ pilgrim should get his faults excused by his friends and relatives at the time of taking their leave and request them to pray for his well being. When he intends to get out of his house, he should offer two ‘Rak’at of Nafl prayers. On getting near the exit of his house he should recite Surah Inna Anzalna. (ch.97).

When he comes out he should give whatever he can afford as charity and should recite ‘Ayat-ul-Kursi’.

Thereafter he should pray to Allah in these words :-

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