Saturday, 28 October 2017

What is India’s annual amount of Zakat, charity distribution?

Zakat, or charity, is one of the five pillars of Islam. The amount is calculated as 2.5% of a family’s annual savings and the donation is made in cash or kind any time of the year, but most contributions are made during the Ramzan because rewards of good deeds in this month are greater.
It is a system provided by Islam by virtue of which the poor’s can be elevated from their status of dependency.
The amount of Zakat distributed by the Indian Muslims is worth exploring. There is no formal data available as such in this regards as most of the charities are done by the individual Muslims mostly in cash, but with certain assumption we can arrive to a nearly close figure.

As per the latest figure there are around 200 million Muslims in India, i.e 20 crore.
Out of this total population we can conveniently assume that there will be 10 percent Muslim upon whom the payment of Zakat is compulsory that is they are sahib –e- nisab.

So on an average 2 crore or 20 million Muslims are paying Zakat. Out of this 2 crore there are individuals who are paying Zakat in lakhs and then there is numbers who are paying in thousand. By arriving on a mean average figure we can easily say that Rs.5000 is the amount every Sahebe Nisab pays. Rs.5000 zakat amount 2 crore times is Rs.10,000 crore a huge amount distributed every year.

After Zakat, lets talk about Fitra, It a compulsory charity to be given by every living Muslims. Mean average comes to Rs.50. The sum total of Fitra paid every year is Rs 1000 crore. Zakat and Fitra amount combined together comes to 11000 crore.

This amount if used judiciously can be enough in transforming the community’s financial status in next 5 years. Hospitals, Educational Institutes, Entrepreneurship incubation centre, Media House, legal Cell could be set up and utilized for the betterment of the community and the nation.

Muallim – The Muslim Lifestyle Magazine