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KembaraXtra – Islamic Banking-Introduction-Zakat
Zakat is a mandatory religious obligation for Muslims and applies to forms of wealth that have the potential to generate financial returns. It is derived from the third pillar of Islam and is generally imposed at a standard rate of 2.5% on monetary assets and their equivalents. Different rates of Zakat apply to other categories of wealth, including agricultural produce and livestock, in accordance with Islamic law.
There is no fixed date for the payment of Zakat. Instead, it becomes due when qualifying wealth has been held for a continuous period of 12 lunar months. Zakat is not payable on personal-use assets such as an individual’s primary residence, household furniture, personal transportation, tools used for one’s trade or profession, or personal jewellery.
Zakat is a mandatory religious obligation for Muslims and applies to forms of wealth that have the potential to generate financial returns. It is derived from the third pillar of Islam and is generally imposed at a standard rate of 2.5% on monetary assets and their equivalents. Different rates of Zakat apply to other categories of wealth, including agricultural produce and livestock, in accordance with Islamic law.
There is no fixed date for the payment of Zakat. Instead, it becomes due when qualifying wealth has been held for a continuous period of 12 lunar months. Zakat is not payable on personal-use assets such as an individual’s primary residence, household furniture, personal transportation, tools used for one’s trade or profession, or personal jewellery.
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