Muhammad Wajahat - Zakah Advisor

A major trap for modern investors is treating a stock portfolio like a piece of abstract internet property that doesn’t require purification. It is incredibly common to assume that because you don’t “control” the underlying company directly, or because your money is tied up in the stock market, you can just ignore it when Zakah...

Because cryptocurrencies are digital and relatively new, many people mistakenly believe they exist outside the realm of traditional Islamic finance and are therefore exempt from Zakah. However, modern scholarly bodies, including AAOIFI, have reached a clear consensus: cryptocurrencies hold financial value and fall under the category of wealth (Mal). If you hold crypto assets, they...

It is incredibly common to treat money lent to a friend, family member, or business partner as if it has vanished into the ether. People often assume that because the cash is no longer sitting in their own bank account, it is no longer their problem when Zakah season arrives. In Islamic jurisprudence, lending money...

A critical mistake made by Muslim business owners, merchants, e-commerce owners, and retailers is assuming Zakah is only due on the liquid cash sitting in the business bank account. It is incredibly common to overlook the physical goods sitting in warehouses or displayed on shop shelves, treating them as “dead money” until a sale is...

A common mistake is people assuming that because the house they live in is exempt from Zakah, all real estate gets a free pass. It is easy to think of bricks and mortar as a safe haven from Zakah, but Islam sharply differentiates between the roof over your head and a wealth-generating asset. While your...

A massive trap people fall into is assuming Zakah is only calculated on the loose cash sitting in their current account. In reality, wealth in Islam is dynamic and encompasses multiple asset classes that hold value or have the potential to grow. By taking a narrow view of your wealth and leaving out non-cash assets,...

Some people make the mistake of restricting their Zakah to only their relatives, even when there are other eligible recipients who may be more in need. While it is permissible to give Zakah to poor relatives (as long as they are not dependents), Islam encourages a fair and balanced distribution to benefit the wider Muslim...

Zakah cannot be given to family members whom you are obligated to support. Since Islam makes financial responsibility a duty for certain relationships, giving them Zakah would be like giving it to yourself, which is not allowed. 📜 The Prophet ﷺ said:     لَا يُقْتَطَعُ لِوَارِثٍ وَلَا يُعْطَىٰ فِي الزَّكَاةِ “Zakah cannot be given...

A common mistake is giving Zakah to non-Muslims, even though Zakah is meant exclusively for Muslims, except in one specific case. Since Zakah is a pillar of Islam, it must be distributed within the Muslim community to support those who are in need. Allah said:                   إِنَّمَا...

One common mistake is using Zakah to pay off debts that were acquired through haram means, such as gambling, riba-based loans, drugs, alcohol, or other sinful activities. While Islam encourages helping those in debt, Zakah cannot be used to assist someone in continuing or benefiting from haram actions. Zakah Can Only Be Given for Halal...