Fiqh al-Zakat al-Mal — Zakat on Wealth in Islamic Law: The Conditions (Nisab Threshold, Hawl Annual Cycle, Full Ownership, Above-Needs Surplus), the Rates (2.5% on Gold/Silver/Cash/Trade Goods; Graduated Rates on Livestock and Agricultural Produce), the Eight Categories of Zakat Recipients (9:60), and Contemporary Questions (Zakat on Shares and Retirement Accounts, Zakat Calculation Methods for Business Assets)

Fiqh al-Zakat al-Mal (فِقهُ زَكَاةِ المَال — Jurisprudence of Zakat on Wealth; zakat: from *z-k-w*: to grow, to purify; zakat al-mal = the purifying levy on accumulated wealth; the third pillar of Islam; definition: the obligatory annual levy on specific categories of wealth that exceeds the nisab threshold for a full lunar year; the four conditions: [1] nisab [threshold of minimal wealth above which zakat is due]: for gold: 85 grams of gold [or its cash equivalent]; for silver: 595 grams of silver; for cash/trade goods: equivalent to the lower of gold or silver nisab [the silver nisab is typically used, producing a lower and thus more inclusive threshold]; the nisab debate: majority position — use silver nisab [595g silver equivalent] as it includes more people and is closer to the prophetic intention; minority position — use gold nisab as more stable; [2] hawl [annual cycle]: the nisab-exceeding wealth must be owned for a full lunar year before zakat is due; wealth that came and went within the year — or did not reach nisab — is not subject to zakat; the hawl resets if the nisab falls below threshold mid-year; [3] tamam al-milk [complete ownership]: the wealth must be fully, unconditionally owned; debts against the wealth are disputed — some schools allow deducting liabilities before calculating zakat; [4] al-fard 'an al-hajat al-asliyya [above-needs surplus]: the wealth must exceed basic living necessities; classical schools differed on exactly what counts as 'basic'; the rates: [1] gold, silver, cash, and trade goods: 2.5% [one-fortieth]; this is the most common zakat rate; [2] agricultural produce: 10% if rain-irrigated; 5% if artificially irrigated [irrigation costs money]; [3] livestock [animals held for breeding and milking, not for trade]: graduated tables for camels, cattle, and sheep/goats as specified in hadith; e.g. for sheep: 40-120 sheep = 1 sheep; 121-200 = 2 sheep; 201-300 = 3 sheep; etc.; [4] minerals and buried treasure [rikaz]: 20% [one-fifth, i.e. khums]; the eight recipients [9:60]: 'the sadaqat [zakat] are only for: [1] al-fuqara' [the destitute — those with nothing]; [2] al-masakin [the needy — those with insufficient]; [3] al-'amilina 'alayha [zakat workers/administrators]; [4] al-mu'allafat qulubuhum [those whose hearts are being reconciled — new Muslims or those inclined to Islam]; [5] fi al-riqab [for freeing slaves]; [6] al-gharimun [debtors]; [7] fi sabil Allah [in the path of God — historically understood as jihad, now broadly as beneficial causes]; [8] ibn al-sabil [the stranded traveler]'; contemporary questions: [1] zakat on shares and stocks: the majority position is that shares represent partial ownership of business assets; calculate zakat as if you owned the proportional business assets [cash, receivables, inventory] not the total market cap; [2] retirement accounts [401k, pension]: contentious; some scholars say zakat is due each year on accessible funds; others say only when withdrawn and accessible; [3] business assets: separate into [a] liquid assets [cash, receivables] at 2.5%; [b] fixed assets [machinery, buildings] — generally not subject to zakat as they are tools of production; [c] inventory at 2.5%; [d] payables and liabilities — most Hanafi scholars allow deducting; [4] the gold vs silver nisab debate: in modern contexts, silver nisab is much lower than gold nisab [silver is cheap]; using silver nisab makes zakat obligatory on many middle-class Muslims; using gold nisab exempts them; the stakes are significant for who pays; [5] zakat on women's jewelry: Hanafi school: gold and silver jewelry is zakatable; Maliki/Shafi'i/Hanbali majority: jewelry held for personal use is exempt) is Islam's mandatory redistribution mechanism.