Currencies refer to gold and silver, as well as any type of money that takes their place and similar things such as shares, bonds and checks.


In the past, paper currency was not known, and people used to barter using commodities. This is a completely impractical and ineffective method in large communities. People graduated in their types of transaction until they had settled on using gold and silver. When Allah Almighty sent His Messenger  sallallaahu  `alayhi  wa  sallam ( may  Allah exalt his mention ) people were dealing with Deenaar (gold) and Dirham (silver) as their main currencies, and thus, when addressing the issue of Zakat the texts of the Quran and Sunnah referred to these two forms of currencies.


Thee are many verses on the obligation of Zakat on cash moneys. Allah Says (what means): "And those who hoard up gold and silver and spend it not in the Way of Allah, announce unto them a painful torment. On the Day when that will be heated in the Fire of Hell and with it will be branded their foreheads, their flanks and their backs. And it will be said unto them: 'This is the treasure, which you hoarded for yourselves. Now taste of what you used to hoard'." [Quran 9:34-35]


The Prophet  sallallaahu  `alayhi  wa  sallam ( may  Allah exalt his mention ) said: "Any owner of gold or silver who does not pay the Zakat due on it will, on the Day of resurrection, have his treasure heated in the Fire of Hell and then made into plates. His flanks, forehead and back will be branded with them. Every time they (the plates) get cold, they will be heated again, on a day that will last fifty thousand years. This will be done to him until Allah pronounces judgment on His slaves. Then one will be shown his path, leading him either to Paradise or to Hell." [Al-Bukhari and Muslim]


The Zakah due on cash money is two and one-half precent (2.5 per cent).


'Ali, may Allah be pleased with him, reported that the Prophet  sallallaahu  `alayhi  wa  sallam ( may  Allah exalt his mention ) said: "There is nothing (due) upon you in gold until it reaches twenty Deenaars (equal to 85grams). Thus, if you have twenty Deenaars at the end of year, then there is half a Deenaar levied on it [as Zakah]. Any additional amount will be calculated in this manner. There is no Zakah on wealth until it has been owned for one (lunar) year." [Al-Bukhari, Ahmad, Abu Daawood, and Al-Bayhaqi]


In another narration, the Prophet  sallallaahu  `alayhi  wa  sallam ( may  Allah exalt his mention ) said: "There is no Zakah on less than five awaq of silver." [Muslim] Five awaq of silver are equivalent to 595 grams.


Trade and Merchandise:


Allah permitted trade and earning from it if it is within lawful conditions and deals with lawful commodities. Islam also has prescribed Zakat on the wealth that a merchant uses for trade as gratitude to Allah. It is also a fulfillment of the right of the needy and as a contribution in the welfare of the Muslim community. Muslim jurists paid great attention to this type of wealth and wrote about it under the category of "trade goods." These included everything planned for sale and purchases with the purpose of attaining a profit, for Allah Says (what means) "O you who believe! Spend of the good things which you have (legally) earned, and of that which We have produced from the earth for you... " [Quran, 2:267]


Jurists, in general, say that this verse is discussing Zakah on trade goods. Regarding the interpretation of this verse, Imaam At-Tabari  may  Allah  have  mercy  upon  him said: "Allah means that you should pay Zakat on good legal earnings and pay the Zakat from the good gold and silver and not the ill-gotten ones."


In order for trade goods to be subject to Zakah, jurists  may  Allah  have  mercy  upon  them have established specific conditions that should be fulfilled. To fulfill these requirements, the owner should be in.


1.      Complete possession of the goods.


2.      The goods should constitute a Nisaab as determined by gold and silver. Nisaab is the minimum limit of wealth or property on which Zakat becomes obligatory. One does not have to pay Zakat on what he or she needs to make a living, such as tools or machines related to carpentry, farming, tailoring, or working as a doctor. All debts are subtracted from one's wealth. And if the resultant wealth reaches the Nissab, one must pay Zkaat.


3.      A full lunar year of Islamic calendar should have passed on these goods, starting from the day of Nisaab's possession.


4.      The Zakah due on all types of trade goods is 2.5%.


Livestock Animals:


Livestock animals are camels, cattle and sheep. Paying Zakat on this is obligatory based on the saying of Allah the Almighty (which means): "O you who believe! Spend from the good thins that you have earned." [Quran 2:267]


Also, the Messenger of Allah  sallallaahu  `alayhi  wa  sallam ( may  Allah exalt his mention ) said to a man who asked him about migration: "Verily its matter is sever. Do you have any camels that you pay charity (Zakat) for?" The man said, "Yes."


The Prophet  sallallaahu  `alayhi  wa  sallam ( may  Allah exalt his mention ) said: "Then do so from behind the seas, for verily Allah will never disregard (decrease) anything of your deeds." [Al-Bukhari]


And he  sallallaahu  `alayhi  wa  sallam ( may  Allah exalt his mention ) also said: "By the One Whom there is no (true) god besides Him, there is no man who has camels or cows or sheep, and he does not pay their Zakat, except that they will be brought to him on the Day of Resurrection larger and fatter than they ever were. And they will trample him with their hooves and gore him with their horns. Every time the last of them passes, the first will be returned to him (to start over). This will continue until judgment is passed between all the people." [Al-Bukhari]


Fruits and Grains:


Grain on which Zakat is applicable, is everything that is stored to be eaten, such as wheat, barley, beans, chickpeas, chickling vetch, peas lentils, corn rye, rice and the like. Fruit includes dried dates, olives and raisins.


This ruling is based upon the Almighty's statement (which means): "O you who believe! Spend from the good things that you have earned and form what we have brought out for you from he earth." [Quran 2:267]


And also (what means): "And give its due on the day of its harvest." [Quran 6:141]


The Prophet  sallallaahu  `alayhi  wa  sallam ( may  Allah exalt his mention ) said: "There is no charity in what is less that five Awsuq." [Al-Bukhari and Muslim] Five Awsuq is equivalent to 618 kilograms.


The Prophet  sallallaahu  `alayhi  wa  sallam ( may  Allah exalt his mention ) also said: "On that which is watered by the sky (i.e. rain), natural springs, or it receives water that comes down from the mountains, a tenth (of Zakat) is due (i.e. 10%). On that which is watered by being sprinkled (by human efforts), a twentieth is due (i.e. 5 per cent)." [Al-Bukhari]


(Precious) minerals and buried treasure:


Zakat on such items is one-fifth. Scholars have ruled that there is no Nisaab for such items. However, some maintain that Zakat must be paid only when these items reach the Nisaab of gold.


The Prophet  sallallaahu  `alayhi  wa  sallam ( may  Allah exalt his mention ) said: "'There is no compensation for a wound caused by a domestic animal, a well (falling in it), a mine (working in it), and one-fifth is due on buried treasure." [Al-Bukhari]


Zakatul-Fitr


Zakatul-Fitr is an obligatory charity on every Muslim at the end of the month of Ramadan. Ibn 'Umar, may Allah be pleased with him, said: "The Prophet, sallaallahu alayhi wa sallam, enjoined the payment of one Sa'a (a volume measure corresponding approximately to the volume of 5 lb) of dates or one Sa'a of barley as Zakat al-Fitr on every Muslim, young and old, male and female, free and slave." [Al-Bukhari and Muslim]


The purpose of Zakat al-Fitr is to purify the one who has fasted from any type of indecent act or speech he might have committed while fasting. It also helps the poor and the needy. Ibn 'Abbaas, may Allah be pleased with him, said: "The Messanger of Allah, sallaallahu alayhi wa sallam, enjoined Zakat al-Fitr on the one who fasts to shield him from any indecent act or speech and for the purpose of providing food for the needy." [Abu Daawood and Ibn Maajah]


The Amount of Zakatul-Fitr


As the first hadeeth indicated, the amount of Zakatul-Fitr is one Sa'a. Sa'a is a volume measure corresponding approximately to the volume of 5 lb of good wheat. The material of the Zakat can be either dates, barley, wheat, rice, corn or similar items considered as basic foods. Abu Sa'eed, may Allah be pleasdd with him, said: "We used to give for Zakatul-Fitr on behalf of every child, aged person, free man or slave during the lifetime of the Messanger of Allah, sallaallahu alayhi wa sallam, one Sa'a of food, or one Sa'a of dried yogurt, or one Sa'a of barley, or one Sa'a of dates, or one Sa'a of raisins." [Al-Bukhari and Muslim]


The Time for Zakatul-Fitr


Zakatul-Fitr has to be paid by the end of Ramadan. There are two times to pay Zakatul-Fitr. Either one or two days before 'Eed as 'Umar, may Allah be pleased with him, used to do, or the day of 'Eed before the 'Eed prayer. Ibn 'Umar, may Allah be pleased with him, reported that the Prophet, sallaallahu alayhi wa sallam, ordered them to pay Zakatul-Fitr before they go out to perform the 'Eed prayer. If Zakatul-Fitr is paid after the 'Eed prayer, it will only be considered as regular charity. The Prophet, sallaallahu alayhi wa sallam, said: "If one pays Zakat al-Fitr before the Salat, it is considered an accepted Zakat, if he pays it after the Salat, it is considered an ordinary charity." [Abu Daawood]


Zakatul-Fitr is to be given to the same eight categories or people as in the other types of Zakat. Some scholars say that the poor and the needy are the most deserving ones since the Prophet, sallaallahu alayhi wa sallam, said that it had "...the purpose of providing food for the needy."


'Eed al-Fitr


Playing, recreation, and eating on the day of 'Eed:


These are permissible as log as they stay within the acceptable bounds of Islam. Anas, may Allah be pleased with him, said: When the Prophet, sallaallahu alayhi wa sallam, came to Al-Madeenah, they had two days for amusement. The Prophet, sallaallahu alayhi wa sallam, has exchanged these days for two better days: the day of breaking the fast and the day of sacrifice. [An-Nasaa'i and Ibn Hibbaan]


Taking women and children to the prayer area:


The Prophet sallaallahu alayhi wa sallam, used to take his wives and daughters to the two 'Eeds. Umm Atiyah, may Allah be pleasd with her, said: "We were ordered to go out with the single and menstruating women to the two 'Eeds in order to witness the good and the supplications of the Muslims. The menstruating women though would stay away from the prayer area." [Al-Bukhari and Muslim]


Going to the prayer area:


The Prophet, sallaallahu alayhi wa sallam, used to go to the prayer area on foot. Jaaber narrated: "On the days of 'Eed, the Prophet, sallaallahu alayhi wa sallam, would go to the prayer area by one route and come back by another route." [Al-Bukhari]


Eating before going to the prayer area:


Since 'Eed al-Fitr is the day on which Muslims break their Ramadan fast, it is preferable to eat before going to the 'Eed prayer. It is a Sunnah of the Prophet, sallaallahu alayhi wa sallam, to eat an odd number of dates before going to pray Salat al-'Eed. Anas, may Allah be pleased with him, reported: "The Prophet, sallaallahu alayhi wa sallam, would not go out on the day of 'Eed al-Fitr without eating an odd number of dates." [Al-Bukhari]


Preparation for 'Eed prayer:


It is preferred to make Ghusl (take a bath), wear one's best clothes and, for men, to put perfume before going to Salat al-'Eed. Ibn Al-Qayyim  may  Allah  have  mercy  upon  him said: "The Prophet, sallaallahu alayhi wa sallam, used to wear his best clothes for the 'Eed prayers and he had clothes that he reserved for the two 'Eeds and Jumu'ah."


Making Takbeer:


Takbeer starts from the night of 'Eed's eve until the Imaam comes out to start the prayer. Allah Says (which means): "Allah intends for you ease and does not intend for you hardship and [wants] for you to complete the period and to glorify Allah (i.e., say Takbeer) for that [to] which He has guided you; and perhaps you will be grateful." [Quran; 2: 185]  The form of takbeer is related by 'Umar and Ibn Mas'ood: "Allahu Akbar, Allahu Akbar, La illaha illallaah. Allahu Akbar. Allahu Akbar wa lillaahil-hamd."


Congratulating each other:


It has been narrated that when the Prophet's companions, may Allah be pleased with them, met each other on the 'Eed day, they would say to each other: "May Allah accept from us and from you." [Ahmad]