Nisab is the minimum amount of wealth a Muslim must possess before they are obligated to pay Zakah, the annual almsgiving required in Islam as a form of charity.
Key Aspects of Nisab:
- Threshold for Zakah: Nisab serves as the threshold above which a person’s wealth becomes subject to Zakah. It is typically calculated based on the value of gold or silver, though some scholars allow for other forms of wealth.
- Calculation: Zakah is usually 2.5% of wealth that exceeds the nisab for one lunar year, and it is intended to purify a person’s wealth and support those in need.
- Types of Wealth: Nisab applies to various types of wealth, including savings, business profits, and agricultural produce, provided the individual possesses the nisab amount for a full year.
Importance of Nisab:
- Ensures Fairness in Charity: Nisab sets a fair threshold, ensuring that only those with sufficient wealth are obligated to give Zakah, while also ensuring that those in need are supported.
- Purification of Wealth: The practice of giving Zakah is intended to purify one’s wealth and promote social responsibility, fostering a sense of solidarity and care for others in the community.
- Support for the Needy: Nisab ensures that the needy are provided for by redistributing wealth, thus addressing economic disparities within society.
Written by AI. A more correct, God given, explanation can be found here.