Zakat – It is an obligatory donation to charity, which is a religious responsibility for all Muslims across the world and is also one of the five pillars of Islam. The term ‘Zakat’ is an Arabic word, which means ‘giving to the needy’ or ‘giving to charity’ which can used in helping poor people worldwide. According to Islamic Belief, Muslims give Zakat around 2.5 percent of their assets or properties and their savings for charity to poor people once a year, especially in the sacred month of Ramzan. Zakat must be given to needy or poor people to buy new clothes or Sawai for Eid celebrations with their family members. It is important to note that Muslims give Zakat to needy or poor people at any time especially during the holy month of Ramadan.

Importance of Zakat in Islam – Zakat is also an Islamic finance where Muslim individuals donate or give charity about 2,5 percent of their wealth or properties to needy or poor people once a year mainly in the holy month of Ramadan. It is mandatory for all Muslim individuals all over the world and is also considered to be a form of worship (Ibadat) mainly in the sacred month of Ramzan. Zakat purifies your earnings by giving money to the poor or needy or those people who are unable to buy new clothes and Sawai to celebrate Eid with their family members. It is based on your savings, income, and savings in one year aa well as the value of your properties or assets.

According to Islamic Belief, Muslims must give Zakat firstly to their poor family members and then to other poor or needy people to celebrate Eid ul Fitr with their family members. It is important to note that Zakat is considered to be the obligatory type of tax for all Muslim individuals worldwide to help poor people. As per Islamic Belief, Zakat must be given to poor or needy individuals to purify their earnings and wealth. Thus, rich Muslim people pay Zakat of about 2.5 percent of their savings or assets to needy or poor people across the world. It is important to note that Zakat is compulsory for all Muslim individuals to pay zakat annually to purify their earnings and assets and to seek blessings from God (Allah).

Muslims must pay or give zakat or charity on any extra wealth under their ownership are discussed below –

• Gold, Silver, and many more jewellery or ornaments in their home.
• Current Income per year
• Pension or earning amount
• Savings per year
• Money saved in the home and bank
• Property or Assets that you buy for investment purposes

Zakat is compulsory for all Muslim individuals on the value of all one’s wealth above a minimum amount every lunar year.  Commonly, Zakat is calculated as 2.5 percent of total savings and wealth or assets above the minimum amount of wealth is called as Nisab during a lunar year. Zakat is also based on current income and the value of processions of Gold, Silver, and many more jewelry or ornaments. It is also based on the number of cattle such as camels, goats, cows, sheep, and agricultural production as per rule. It is important to note that Nisab for Gold and Silver jewelry is 87.48 grams of gold and 612.36 grams of silver jewelry.

Most Islamic countries use Zakat to help needy or poor or needy people across the world. Zakat is also used for those poor people whose countries are destroyed by powerful nations in the war.

Recipients of Zakat – Recipients or Receivers of Zakat must be poor or needy individuals who are unable to celebrate Eid celebration. The categories mentioned in the holy Quran is poor family members, orphans, new Muslim individuals, freed from slavery, travellers, and people who are in bondage, and debt-ridden.