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What is Zakat in Islam?
1. What Zakat Means
Zakat is an obligatory form of almsgiving in Islam. It is both a spiritual practice and a social system that helps reduce hardship in the community.
The word itself carries meanings like purification and growth: giving from your wealth is a way to purify what you have and strengthen your character.
2. Who Pays Zakat (and When)
Zakat is due on certain kinds of wealth when a person owns at least a minimum threshold (nisab) and that wealth has been held for a lunar year (hawl).
Common examples of Zakatable assets include cash, savings, gold/silver, trade inventory, and certain investments.
3. How Much Is Zakat
The most well-known rate is 2.5% on qualifying savings and trade wealth, though other categories can have different rules.
Because situations vary, many people calculate carefully or consult a scholar for complex assets and debts.
4. Who Receives Zakat
Zakat is meant for specific eligible categories of recipients described in Islamic teachings.
- People in poverty or severe need
- Those in debt who cannot repay
- Efforts that serve legitimate communal welfare
- Other eligible categories recognized by scholars