Islamic Finance | MCQs

Explanation

The poor, the indigent, the debt-ridden and the unfree.

While gold and silver are Zakat eligible, there is no Zakat due on your personal belongings that you consider necessary.

Explanation

Term of office of the Chairman and the Deputy Chairman is three years.

Explanation

Term of office of the Chairman and the Deputy Chairman is three years.

Explanation

Zakat can be collected through Banks branches 

Explanation

In Pakistan, the system of compulsory collection and distribution of Zakat and Ushr began in 1980.

An ordinance decreed by General Muhammad Zia-ul-Haq calling for a 2.5% annual deduction from personal bank accounts

on the first day of Ramadan,

with the revenue to be used for poverty relief.

Explanation

The word “ghareem” comes from the word “ghurm”, which means debt.

The gharem is a person in debt, which is clearly stated in the Quran as an eligible category to receive Zakat.

Therefore if a person has a debt, and cannot pay it back, he/ she can receive the amount needed to pay back the debt.

Explanation

This account will be credited with the amounts received as financial grants from government

or from a semi-government or non-government.

Explanation

Disbursement of Zakat takes place by transfer of funds from Central Zakat Fund to the Provincial Zakat Fund

which in turn transfers it to District Zakat Committees of all the districts on population basis.

Zakat fund is meant for the poor and deserving Muslims living below poverty line.

Explanation

An individual land owner shall be exempt from the compulsory levey of Usher

according to Section 5 of the Zakat and Usher Ordinance 1980 if the production from his land is less than 948 kilo grams of wheat 

Explanation

The zakah is levied on movable property if it remains in one's possession for one year, but the 'ushr is payable on each crop.

The 'ushr is payable on the produce of the land even if the owner is a minor or a lunatic.