Chapter 1 Introduction to the Zakat and Taxation - MAE2013 Malaysian Taxation and Zakat Administration Session II(2012\/2013 Nor Asiah Yaakub Ext 6392

Chapter 1 Introduction to the Zakat and Taxation - MAE2013...

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MAE2013 Malaysian Taxation and Zakat Administration Session II (2012/2013) Nor Asiah Yaakub Ext : 6392
Learning Objectives After completing this chapter, students should be able to: Explain the basic concepts of zakat, types and relevant hadith and Quranic injuction. Explain the basic concepts of Malaysian taxation and relevant section under Income Tax Act (ITA) 1967 Differentiate between tax and zakat from various aspect
Introduction to Zakat An obligation for Muslims to fulfil The 3 rd  from the 5 pillars in Islam "Islam is based on five: testifying that there is no god but Allah and that Muhammad is the Messenger of Allah, establishing the prayer, paying the Zakat, the Hajj and the fast of Ramadan." The  hadith  also  emphasized  on  the  importance  of  paying zakat Ensures  that  wealth  is  distributed  evenly;  thus  eradicates poverty among the Muslims
Cont… Prior to Hijrah, zakat is only compulsory to  those wealthy people who are close with the  Prophet s.a.w. At that time, the obligation to pay zakat is  based only on their awareness, willingness,  discretion An organized system of zakat (for instance  having the conditions for  nisab,  rate and  haul  ) was only applied after the 2 nd  year of  Hijrah
Definitions Literally   cleansing or purifying of something from dirt or filth Praise, growth and increase Theologically Spiritual purification resulting from paying zakat Legally Transfer of ownership of specific wealth to specific  individual (s) under specific conditions
The main aims of zakat Our worship to Allah for all His bounties to mankind Al-Baqarah: 267 “Oh ye believe! Give of the good things  which ye have (honourably earned). And of the fruits of the  earth which we have produced for you..” Assist the poor and the needy  Al-Dzariyat: 19 “and their wealth and possessions (was  remembered) the right of the (needy)..” Act as a mechanism to distribute wealth Purify one’s heart and self from being stingy Al-Tawbah: 103 “ Take Sadaqah (alms) from their wealth in order to purify them and sanctify them with it, and invoke Allah for them. Verily, your invocations are a source of security for them”
The importance of zakat Surah An Nur, 56: “And perform As-Salat ( Iqamat-as-Salat ), and give Zakat and obey the Messenger (Muhammad ) that you may receive mercy (from Allah)” Narrated Abu Huraira: Allah's Apostle said, "If one give in charity what equals one date- fruit fro the honestly-earned money and Allah accepts only the honestly earned money --Allah takes it in His right (hand) ar then enlarges its reward for that person (who has given it), as anyone of you brings up his baby horse, so much s that it becomes as big as a mountain (Sahih Bukhari, Volume 2, Book 24, Number 491)

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