Answered by Shaykh Abu Usamah
I have, alhamdulillah, just become free from my students loans and am wondering when should I start paying zakat. What is the exact calculation, i.e. what portion of my earning do I consider basic amount for everyday living, etc.? Is there are certain month in the Islamic calendar that is thought to be most praiseworthy in the sight of Allah to pay one’s Zakat? Who should I give this money to (an organization or br./sr. overseas studying, am I allowed to give it to br./sr. studying overseas?)
Al-Salam `alaykum
As soon as you become the owner of nisab* your Zakah year begins. Thereafter
every year on that date you must pay Zakah at the rate of 2.5% . Zakah can be given to any person whose net non-essential assets do not equal or exceed the nisab* amount. Since this is difficult to ascertain nowadays, as many people invariably possess many items and sometimes money that is more than nisab, it is best that the Zakah be given to a reliable organization, that is supervised by competent `Ulama, and that investigates cases of worthy recipients.
(*) Nisab is the monetary equivalent of 87.49g of gold or 613.35g of silver. The amount in your local currency can usually be ascertained from a reliable local Ulama body.
Abu Usamah