The literal meaning of Zakat is piety and in Shari’ah it is the name of that share which in compliance to the command of Allah is given to the needy in the prescribed way. This fiscal worship is an obligation for every sane, mature and free Muslim in whose charge there remains a principal amount for one whole year. It is the minimum wealth which shari’ah has specified for the recovery of Zakat. Zakat is not compulsory on money which is less than the principal amount i.e. seven and half tola gold, or fifty two and half tola silver, or currency equivalent to that, or business goods after deducting the needs of the owner, and after passing of one year, the fortieth part, or two and half percent is to be paid as Zakat.

Besides this there is a Zakat on the produce of farm whether it is less or more. Twentieth part of the produce of irrigated land and tenth part of the unirrigated land is compulsory. There is no condition of the passing of the one whole year. Zakat is also compulsory on live stock. The Nisab (total wealth) of sheep and goats is forty, of buffaloes and cows is thirty, and minimum of camels is five. Zakat is not compulsory on the household: clothes, furniture, animal for transportation, cycle, motor, tools, weapon, personal library and mortgaged property. Insane and children are exempted from Zakat. The person who is left with less Nisab after making the payment of debt is also exempted from Zakat.

Zakat is compulsory for well-off and wealthy people. Its imposition is proved from Quran and Sunnah. It is named sometime Zakat, sometime almsgiving, and sometime the right of a client, or deprived. Allah ta’ala says,

"(O believers) establish the prayers and pay the Zakat." (Baqra 110)

"There are the people in whose wealth there is a known share of the needy and the poor." (Al mu’arj 24 – 25)

"(O Muhammad) Take alms out of their wealth (which they have brought) so that you may purify them (hearts)." (Taubah 103)

The imposition of Zakat is for purity of heart, reformation of morals and benefits of A’akhrat; Piety, the word meaning of Taharat, means that worship refrains the man from misery, meanness, greed and selfishness type of habits which can be a cause of mutual rivalry, prejudice, jealousy. Enmity, cruelty, disturbance and wars.

Other important purpose of the imposition of Zakat is that wealth should spread in all, be shared by all, and there should not be any monopoly of an individual or group. Refering to this purpose the Holy Quraan says,

"……….. In order that wealth may not circulate only among those of you who are rich." (Alhashar 7)

The Holy Prophet clarified the purpose of Zakat at the time of appointing Hazrat Ma’az, the Governor of Yemen:

"(O Ma’aaz ) Collect the Zakat from the rich and pay it to those of them who needy."

By Zakat the wealth does not accumulate in the hands of the rich, but the poor also get the benefits of it. As the result of it the rich become sympathetic with the poor and the poor start loving the rich. In this way the mutual communal rivalry is not created and an economic balance is maintained in a Muslim nation. Therefore Zakat eliminates the social evils and mutual disturbance.

Masarif is the plural of the Masraf. Which means the head and the place of utilization. It means the people whom Zakat is given. The Holy Quran itself has mentioned the uses of Zakat. Zakat is the right of beggars, weak, official collectors, travelers, debtors and those who fight for Allah. Besides them people who are bond in slavery also deserve it, and want to get themselves free by paying money to their masters. It is not rightful to spend Zakat on other uses not mentioned in the Holy Quran. It is necessary to spend Zakat on only one of the above mentioned uses.

To pay zakat is not lawful to one’s son, daughter or to their children. So the children can not pay Zakat to their father, grand father etc.

Husband and wife can not pay zakat to each other.

Its not good to pay zakat to a non muslim and a muslim who apart from his house, house hold, horse, (cycle etc.) has the things valuing more than rupee 50.

Ahlay Bait and Saadat do not qualify for zakat. Poor saadat and not be helped by other means so that their honor and dignity remain intact.

It is not necessary to specify anybody honor of zakat. Therefore it is not lawful to spend zakat on the construction of a mosque, and coffins of a dead etc.

As far as possible, zakat should be distributed among the relatives, neighbors and those who are living around. For no purpose it is no lawful to spend zakat to far flung areas.

In the world there is no religion which has not advised to support the needy and to serve the humanity, and not made it the important part of the worship. But it is the specialty of Islam that it does not suffice to this but has made it compulsory for every well-off person to pay the fixed share every year after making calculations of his wealth, and then gave it so much importance that in acts it comes next to Namaz. And the Holy Quraan has clarified this thing by mentioning both the acts simultaneously at every place that these two acts are the primary signs of the distinction of Islamic life of a group: Namaz and zakat. If any group leave them practically they will not be considered the part of Muslims. This was the reason the Sahabah Ikram fought against those who refused to pay the zakat. Hazrat Abu Bakar said;

" Who ever make a distinction between Namaz and Zakat, by God I’ll surely fight against them."

The holy Quraan has attached the matter of zakat with a particular system, and on this system the achievement of all purposes and uses is based.

Zakat is a symbol of faith. It is the biggest means of national life, and durability of state, human welfare, Islamic civilization’s existence and progress. Therefore the Holy Quran has shown resentment on not paying the Zakat:

And those (with greed) hoard gold and silver, and spend it not in the way of Allah, so give to them the news of a painful punishment. On the day when it (gold and silver) will be made hot in the fire of Hell, and their foreheads and their sides, and their backs shall be branded there with (and it shall be said to them). This is what you hoarded for yourself; so (now) taste what you used to hoard. (Taubah 34 – 35)