Shah Abdul Latif University kahirpur Miras

Online paper

Sir Zain al Abdin

Name: Asma Sahito D/O RabDino sahito

Roll Number: IS-0118-15

Class: Part4 Final year Fresh

Subject: Fiqh Al Maliyat

Department: Islamic studies

Date: Friday- 11-JUNE

Q.NO 2: What humanitarian and socio-political
responsibility does Zakat encourage among
Muslims?

Zakat encourages Muslims to redistribute wealth and boosts social responsibility.

Zakat has both humanitarian and socio-political value. It is designed by our Creator
to redistribute wealth and encourage social responsibility. When Zakat is collected
and distributed correctly, it minimizes the needs of citizens to such an extent that
there may be no poor or needy within the Muslim community. It has been reported
and documented that at certain times in Islamic history no person, of any religion,
who lived in the Islamic Empire qualified to receive Zakath. There was enough
money and wealth circulating to ensure a fair standard of living for everybody.

Zakat (Obligatory Charity)Zakat is designed by our Creator to redistribute wealth

and encourage social responsibility.

Zakat (Obligatory Charity)

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Zakat (Obligatory Charity) is all about giving. Zakat is one of the major religious
duties in Islam. Literally, zakat means to “purify”. It refers to the purification of a
believers’ wealth and soul. Wealth purification denotes the mobilization of assets for
the purpose of financial growth and justified distribution. Purification of the soul
implies freedom from hatred, jealousy, selfishness, uneasiness and greed. Other
Quranic connotations also include the purification of sin. is a fixed proportion
collected from the surplus wealth and earnings of a believer. It is then distributed to
prescribed beneficiaries and for the welfare as well as the infrastructure of a society
in general. This contribution is made payable by a Muslim once every y is paid on the
net balance after a Muslim has spent on basic necessities, family expenses, due
credits, donations and taxes. Every Muslim male or female who at the end of the Hijri
year is in possession of the equivalent of 85 grams of gold or more in cash or articles
of trade, must pay his or her zakat at the minimum rate of 2.5 percent.

Zakat has a deep humanitarian and social-political value. This religious act prevents
the hoarding of wealth and advocates solidarity with humanity because excessive
wealth is distributed amongst the poor. The paying of zakat also helps purify one’s
soul and encourages a person to have gratitude towards God’s bounties. Zakat is
mentioned along with Salat (prayer) in 30 verses of the Quran. It was first revealed
in Surah 73:20; And establish regular prayers and give regular charity; and loan to
Goda beautiful loan. And whatever good ye send forth for your souls, ye shall find it
in God’s presence, Yea, better and greater in reward and seek ye the grace of God:
for Godis oft-forgiving, Most Merciful.”In another verse, God declares that those who
pay zakat, are included within the Muslim society “But (even so), if they repent,
establi2sh regular prayers, and practice regular charity, they are your brethren in
Faith: (thus) do We explain the Signs in detail, for those who understand.” (9:11)

God says in the Quran: “They were enjoined only to worship God, sincere in their
faith in Him alone – and of upright religion – and to establish the Salat and the
Zakat. Such is the upright religion, (98:5)

“Those who lay up treasures of gold and silver and spend them not in the way of
God; give them the news of a painful punishment, on the Day when that (wealth)
will be heated in hellfire and their foreheads and their sides and their backs branded
therewith: “This is the treasure which you laid up for yourselves! Taste, then, your
hoarded treasure!”

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Q.NO 3: To whom is zakat given? What are the
people and places that zakat can be given? Explain in
the light of Holy Quran

People to whom Zakat is paid are those that are entitled to it, and these are the eight
categories of people that Allah Almighty mentioned exclusively in His statement:
“As-Sadaqah (Zakat) are only for the Fuqara’(poor), and Al-Masakeen (the needy),
and those employed to collect (the Zakat), and to attract the hearts of those who
have been inclined towards Islam, and to free captives, and for those in debt, and for
Allah’s cause

The poor: The plural of faqir, a person who does not have anything with which he
can fulfil his basic needs and that of his family i.e. food and drink, clothing and
shelter.

The needy: The plural of miskeen, a person who possesses half or more of his
needs e.g. a person with one hundred but needs two hundred.

Its administrators’: who have been appointed by the authorities to gather

Zakat and monitor its distribution to those who need it. -They are given from the
Zakat fund an amount equal to the wages they get for their work, even if they are
rich, for the collectors have devoted themselves to this work, unless they are paid
wages or salaries from the state and then they should not be give from the Zakah.

Those whose hearts are inclined towards Islam: Respected

leaders, for whom it is hoped, by giving them Zakah, that they will either accept
Islam, refrain from evil, have their faith strengthened (if already Muslims), or defend
the Muslims against an enemy.

The Slaves:The slave and the partial slave (who is the slave who is trying to buy
himself from his master) are given from the Zakah what is enough for them to free
themselves completely.

Debtors (Al-Gharimoon)

The plural of gharim: The one in debt 1:A person who incurs a debt to
fulfil his personal needs; he is given from Zakah an amount to pay the debt, if he is
poor.

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2 person who incurs a debt as a result of reconciling two groups of Muslims; he is
given from Zakah an amount to pay his debt, even if he is rich.

For Allah’s cause

Those who are fighting in the cause of Allah.

They are given an amount that will suffice them in fighting in the cause of
Allah. The wayfarer
A traveler who is stranded and has no money with him.

He is given from Zakah an amount that ensures his safe delivery to his
country of residence, even if he is rich in his own country. But pay the due
thereof on the day of its harvest” (Al-An’am: 141), “…and give Zakah” (An-
Nur: 56); (a Qur’anic order), as an order necessitates prompt compliance.
As-Sadaqah (Zakah) are only for the Fuqara’(poor), and Al-Masakeen (the
needy)” (At-Taubah: 60), i.e. the poor and the needy everywhere.

That which is taken for Zakah and that which is not

Zakah is taken from the average of the wealth, not from its best nor from its
worst. It is therefore, not obligatory for one paying his Zakah to give the
healthiest of his cattle, the pregnant one or the billy goat.

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 Q.NO 4: What are Solutions for the Economic
Challenges of the Muslim Ummah?
Muslims today are facing some of the most critical challenges to their well-
being and to their place in the global order.
The problems that bedevil the Muslim World have become widespread to the
point that our image is tarnished by unfair stereo types. For example, Islam is
now equated with violence, poverty and indignity. In reality, these troubles
have nothing to do with Islam. These are not problems that are exclusively in
the domain of Muslims.

Economic and Humanitarian Disasters: Nevertheless, what

cannot be denied is that in many parts of the Muslim World, we are in deep
crisis. The stark reality is that violent conflict, especially domestic conflict,
abounds in the Muslim World.
Linking with Terrorism: More damaging is the increasingly professed
link between international terTerrorismrorism and Islam. The terrible events
of September 11, 2001 have provided a convenient excuse for those who
want to promote the theory of a Clash of Civilizations. To them, it is
convenient to paint matters in the starkest possible terms between black and
white; good and evil; the West and Islam.
Lack of Unity: We must admit that many of these problems arise due to
our weaknesses. And much of our weakness stems from the fact that our
unity is so fragile and all too easily fragmented. All Muslim read the Quran. It
is and will always be a source of divine guidance and inspiration. The
teachings of the Quran are dynamic and relevant for all time.
Utilization of Resources: But violence is not our only problem. There
is an abundance of resources in many Muslim countries. Indeed, some of us
are rich and affluent. Yet poverty and other forms of deprivation are also an
extensive and unfortunate part of the Muslim landscape. As successive United
Nations development reports attest, poverty is a serious problem in at least
half the countries of the Muslim World.
Lack of Peace and Stability: Our first prerequisite will have to be
peace and stability. We cannot prosper or live in dignity without peace. The
peace and stability we seek cannot be imposed by the barrel of a gun.
Poverty Eradication:For the Muslim world to truly uplift itself, we
must concentrate on capacity building. The Ummah must be equipped with
the tools to succeed. We should grasp every opportunity to exchange
experiences amongst ourselves in areas concerning poverty eradication,
development and economic growth.

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 Lack of Human Resource Development:The assets that some
of us already possess must be efficiently developed. In this regard, no asset is
more valuable than our own people. No investment is more rewarding, or
more productive, than investment in our own people. We need to accord the
highest priority to education and the development of our human capital.
This research discovers that the Muslim ummah has been facing many
challenges and issues, such as cultural impoverishment, educational and
technological backwardness, economic emasculation, internal strife,
ideological battles, and domination of the hegemonic world powers.
The Muslim world needs to inculcate the values of trust, equity, justice,
forgiveness and brotherhood. But above all, comes the injunction of
righteousness. Because, it is from righteousness that every other condition
flows. Peace is not only physical security or absence of war and conflict,
although it is an essential aspect of the wider concept of peace.

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 Q.NO 5: Write a short note on any two of the
following:
1. Sadaqa jaria
Jariyah is among the three deeds that will accompany you in the grave.
Ponder upon this… a deed that will support you even after leading this life.
And, in this life you have the opportunity to do great things.
TYPES OF SADAQAH JARIYAH
Examples of Sadaqah Jariyah include: to dig a well, to provide cataract eye
surgery, to build a mosque, and to sponsor an orphan. In the Qur’an Sadaqah
is mentioned thirteen times and it covers all kinds of charity in the form of
giving. Things that mean small to you can have huge impact to someone else,
like a water well donation that provides clean drinking water to thousands of
people.
Abu Hurairah (May Allah be pleased with him) reported:

“The Messenger of Allah (‫ )ﷺ‬said, “When a man dies, his deeds

come to an end except for three things: Sadaqah Jariyah (ceaseless charity);
a knowledge which is beneficial, or a virtuous descendant who prays for him
(for the deceased). ”
Sadaqah Jariyah is Investing in the Hereafter
Throughout life, we invest a lot of money, time and effort into achieving our
various personal goals and dreams. We often focus our energy on work or
home, putting in a lot of hard work to obtain the results we wish to see.

We should remember to give just as much energy and focus into investing in
our Hereafter as this is where the rewards are the greatest; not only for our
today but for long after we have died.
We should all aim to adopt ongoing charity as a habit in Islam as opposed to
an occasional gesture as we will, one day, be thankful of our actions when the
resulting rewards continue to benefit us in our Hereafter.

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 (2) Interest& Insurance:
Interest is the rate lenders charge individuals to borrow money. Essentially,
interest is the cost of borrowing money. The amount you borrow is typically
referred to as the principal amount.

How does interest work? When you borrow money from a lender, you pay
interest. Likewise, if you lend money, you earn interest. Common types of
loans that have interest include student loans, business loans, and loans for
mortgages.

If you need a loan for a new business, you might apply for business loans. Or,
you may opt to use a personal loan for business.

The lender can charge a fixed percentage, known as an interest rate. Or,
interest can be a flat amount or fee. The interest rate determines the amount
of interest the borrower must pay. The amount the lender charges for interest
depends on many factors. Some things that can impact interest rates include:

Type of loan
Amount of expected inflation
Length of time money is lent
Liquidity of the loan
Government intervention on interest rates
Credit history
Usually, interest rates are set as an annual percentage. However, time
periods for interest can be longer or shorter than a year.

Simple and compound interest

Lenders can apply two kinds of interest to loans: simple and compound.
Business loan rates use either simple or compound interest. Simple interest is
a set rate on the principal amount lent to the borrower. Compound interest
refers to the interest on the principal amount and the compounding interest
paid. Whether or not an interest rate is simple or compound depends on the
type of interest rate.
Insurance:#
Insurance is a contract, represented by a policy, in which an individual or
entity receives financial protection or reimbursement against losses from an
insurance company. The company pools clients’ risks to make payments more
affordable for the insured.

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 Insurance policies are used to hedge against the risk of financial losses, both
big and small, that may result from damage to the insured or her property, or
from liability for damage or injury caused to a third
How Insurance Works
There is a multitude of different types of insurance policies available, and
virtually any individual or business can find an insurance company willing to
insure them—for a price. The most common types of personal insurance
policies are auto, health, homeowners, and life. Most individuals in the United
States have at least one of these types of insurance, and car insurance is
required by law. Businesses require special types of insurance policies that
insure against specific types of risks faced by a particular business. For
example, a fast-food restaurant needs a policy that covers damage or injury
that occurs as a result of cooking with a deep fryer. An auto dealer is not
subject to this type of risk but does require coverage for damage or injury
that could occur during test drives.

End…………

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