Uzma Khatoon

As one of the five pillars of Islam, Zakat, is a religious obligation for Muslims and means to help foster social justice. The term "Zakat" in Arabic signifies purification and growth, reflecting its dual purpose of cleansing wealth and promoting societal welfare. Muslims are required to donate 2.5% of their annual savings to eligible recipients specified in the Quran, to ensure that wealth circulates and benefits those in need.

The Quran emphasizes the importance of Zakat as it is mentioned 30 times, often in close association with prayer (Salat) in the Holy book. This pairing emphasizes that worship in Islam is not limited to spiritual acts but includes social responsibilities.  For instance, Surah Al-Baqarah states: "And establish prayer and give Zakat, and whatever good you put forward for yourselves – you will find it with Allah." (Quran 2:110).

This association underscores that worship in Islam is not confined to spiritual acts but extends to fulfilling social responsibilities. Furthermore, Surah At-Tawbah highlights the purifying role of Zakat: "Take from their wealth charity to purify them and cause them to increase and invoke Allah's blessings upon them. Indeed, your invocations are a source of reassurance for them. And Allah is All-Hearing, All-Knowing." (Quran 9:103). These verses illustrate that Zakat is both a spiritual act and a practical tool for societal upliftment.

Early Muslim scholars interpreted Zakat as a means of purifying wealth and causing it to increase through God's blessings. They also saw it as a way to cleanse the soul from selfishness and greed while fostering social welfare by redistributing wealth to the needy. This dual purpose of spiritual purification and social justice became a cornerstone of Islamic economic principles.

The Quran specifies eight categories of recipients eligible for Zakat in Surah At-Tawbah: "Zakat expenditures are only for the poor and the needy, and for those employed to collect it, and for bringing hearts together [to Islam], and for freeing captives [or slaves], and for those in debt, and for the cause of Allah, and for the [stranded] traveler – an obligation [imposed] by Allah. And Allah is Knowing and Wise." (Quran 9:60). This verse provides a comprehensive framework for Zakat distribution, ensuring that it addresses diverse social needs.

This verse makes it clear that the Quran does not differentiate between people based on their beliefs or religion when it comes to receiving Zakat. In simple terms, Zakat can be given to any poor or needy person, regardless of their religion.

Who deserves zakat?

The Quran mentions eight categories of people who can take zakat: the poor, destitute, those in debt, pilgrims, missionaries, poor non-Muslims who evoke sympathy among the zakat-giver.

Who cannot get zakat?

Those who are sahi-be-nisaab - one who owns at least 75 grams of gold or 520 grams of silver or an equivalent amount of yearly savings.

The introduction of Zakat during Prophet Muhammad's time marked a pivotal moment in Islamic history. Initially mentioned in revelations received in Mecca, it became a formal duty for Muslims after the Prophet's migration to Medina.

The emphasis on Zakat continued throughout his life, solidifying its role as a cornerstone of Islamic practice. Despite its religious significance, misconceptions about Zakat persist. Some believe that it can only be given to Muslims; however, the Quran clarifies that Zakat can be distributed among various categories of people, including the poor and needy, regardless of their faith. This inclusivity reflects the universal nature of charity within Islam.

In India, the socio-economic status of Muslims presents significant challenges. Data indicates that Muslims face higher poverty levels compared to other religious groups. The socio-economic status of Muslims in India is significantly disadvantaged based on government data. According to the National Sample Survey Office (NSSO) 68th round (2011–12), the average per capita consumption expenditure of Muslims is ₹32.66 per day, the lowest among all religious groups, indicating higher poverty levels.

Labour force participation rates are also low, with only 342 Muslims employed per 1,000 working-age individuals in urban areas and 337 in rural areas. Educational attainment is similarly poor, with Muslims having the lowest enrollment rates in higher education, accounting for just 4.4% of students.

 These indicators reflect a vicious cycle of poverty, low educational access, and limited job opportunities, further exacerbated by structural and systemic barriers. The paper emphasizes the need for community-driven initiatives like zakat to address these socio-economic challenges effectively.

Zakat donations play a crucial role in addressing these socio-economic issues. Many Muslims prefer to give their Zakat during Ramzan, believing it brings greater blessings. However, the current system for distributing Zakat in India is fraught with problems such as a lack of organization and transparency.

Often, funds are concentrated within affluent communities while those in dire need remain unsupported. A significant portion of collected Zakat is directed towards religious institutions like madrassas.

 While these institutions serve important roles within the community, there are concerns about how funds are utilized. Reports suggest that administrative costs consume a big chunk of donations without significantly improving educational outcomes or community welfare.

To enhance the effectiveness of Zakat distribution in India, experts propose establishing a Central Zakat Fund managed by a committee comprising religious leaders and financial experts. This fund would allow for better tracking and allocation of resources to ensure that assistance reaches those who need it most.

To manage Zakat effectively, integrating it with Waqf management and leveraging the Waqf Amendment Act can create a transparent and efficient system. The Waqf Amendment Bill, 2024, aims to streamline waqf management by introducing technology, improving registration processes, and enhancing governance. By aligning Zakat funds with waqf properties, communities can maximize their impact on social welfare projects.

Furthermore, leveraging digital platforms for crowdfunding can facilitate greater participation from donors across India. With millions of internet users in the country, online donation systems can help connect donors with specific welfare projects that address community needs such as education and healthcare. Regular updates on fund usage can foster trust among donors and beneficiaries alike. This transparency is essential for building confidence in the system and ensuring that contributions lead to tangible improvements in people's lives.

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Dr. Uzma Khatoon has taught at the Aligarh Muslim University