The scholars have different opinions regarding the minimum threshold that works as criterion to distinguish those who are eligible to receive zakāh from those who are not among the poor and needy. The details are as follows:

1. The Ḥanafī School:
   • The deserving recipients of zakāh among the poor and needy are categorized as follows:
     • The destitute who have nothing.
     • The poor who possess wealth below the niṣāb.
     • Those who own less than the niṣāb in livestock.
     • Those who own houses and household items necessary for themselves and their dependents but do not own additional wealth reaching the niṣāb.

They differ regarding someone who owns the niṣāb in livestock, that does amount to the niṣāb in cash. Some say the niṣāb is based on the type of wealth (livestock), while others say it must reach the niṣāb in cash value to be subject to zakāh.

Therefore, the Ḥanafīs consider owning the niṣāb as a criterion to identify sufficiency and insufficiency, using it as a consistent parameter for determining obligation of paying or receiving zakāh. They also believe that the niṣāb should be free of essential needs such as debt repayment, housing costs, medical expenses, or food. If these consume the wealth, it does not constitute a zakatable niṣāb, which must be free from such demands.

2. The Majority of Scholars (Mālikīs, Ḥanbalīs, Shāfi῾īs):
   • Poverty and neediness are not linked to owning the niṣāb. A person who owns the niṣāb but still remains in need does not have to pay zakāh. For instance, someone who has seven units but needs ten is not obliged to pay zakāh, regardless of whether the seven units meet the niṣāb.

Consequently, if someone owns the niṣāb required for zakāh, which is the equivalent of eighty-five grams of 24-karat gold, they must pay zakāh if this wealth is remaining after staying essential needs. However, if the wealth is consumed by essential needs, then zakāh is not obligatory, as the person is not truly wealthy or self-sufficient. The critical point is the condition of the wealth at the time zakāh becomes due, not the duration of the year (ḥawl).

Thus, for someone who owns the minimum threshold (niṣāb), we consider their essential needs. If these needs consume or reduce their wealth below the intended threshold, they are eligible to receive zakāh according to all scholars.

Fatwa issued by Dr. Khālid Naṣr