Quran and Hadith (sayings of the Holy Prophet PBUH) convey that the payment of Zakat purifies and cleanses an individual’s wealth and makes it grow as Allah blesses it for compliance with His commandment. It is therefore an act of worship relating to one’s wealth.

The Qur’an promises mercy for the Believers who establish regular prayer and practice regular charity (zakat-ul-mal) (Al Qur’an, 7:156; 9:71; 22:78; 24:56 and many more).

Zakat is due on any Muslim adult, man or a woman, who owns the minimum required amount of wealth. This eligibility is for Sahib-un-nisaab (owner of wealth above the level of nisaab).

The literal meaning of the word ‘zakat’ is “increase” as in growth, “blessings”, “purification” or “commendation”. The primary purpose of Zakat is to redistribute the wealth of the society among the needy and the poor, it is the right of the poor in the wealth of the wealthier.

The moral objective is visualized in the cleansing of the zakat funds; the social objective is visualized in the redistribution of income in favor of the eight social groups especially the poor and needy. The economic objectives are visualized in fighting hoarding and moving the cash flow to support the necessary expenditure at the expense of extravagance spending, and encouraging non-usury loans for those in the bondage of debt or cripplingly indebted.

Zakat is compulsory alms as well as the third pillar of Islam, which entails giving out to eight disadvantaged groups in the society as mentioned in the Qur’an in Al-Tawbah Surah 9:60, but grants Muslim’s flexibility in its payment. This guarantees the right of the needful while accommodating changes in how wealth is stored, how money is best distributed, and how different cultures change over time. The Quran also makes it possible for Muslims to pay their zakat to trusted institutions that distribute it to those who belong to one or more of the zakat-worthy categories.