Thursday

The Nisaab

The Lawgiver, Allah has prescribed the minimum amount that is obligatory for Zakat in different ranges of properties, and that minimum amount is known as nisaab. The reason for nisaab is to ensure that no one is forced to give Zakat out of what he or she does not have, and that no wealth goes without Zakat. Nisaab is also an insurance against the tyranny of the state to tax the poor and or the neediest as is the case in many countries. Nisaab is a reference point for the average Muslim who is not sure whether he possesses the minimum wealth on which Zakat is obligatory. The wealthy need not worry about the Nisaab. Zakat is obligatory on their entire wealth and must be paid out at the end of financial year that they set for their Zakat.