Zakat is defined as "A determined portion taken from wealth and allocated to those deserving it, by a Qur'anic injunction." Sometimes Zakat is referred to in the Holy Qur'an as Sadaqah (alms).
The Qur'an says, "Of their goods take alms, that so thou mightest purify and sanctify them; and pray on their behalf, verily thy prayers are a source of security for them." (Surah Al-Taubah, No.9, Verse: 103). In an authentic hadith, the Prophet (peace be upon him) said to his Companion Mu`adh, when he was sent to Yemen as governor, "Tell them that Allah has made Zakat obligatory for them, that it should be collected from the rich and distributed among the poor."
Every Muslim who possesses a zakat payable amount (Nisab) for one luner year has to pay Zakat (2.5% of Nisab).
Rich means one who have his nisab amount for a complete one year.
Rich must give 2.5% of his nisab amount to the poor.
Zakat must be given because it is the order of ALLAH to muslims.
It is one of the five pillars of islam.
If it is implemented properly,poverty will be eradicated in the society.
Defination of sahib-e-nisab :the person who have 52 & 1/2 tolas of silver or 7.5 tolas of gold or cash money which reached the price of any one of them is considered as sahib-e-nisab.
He have to sadka 2.5% of the total nisab.
It is order to give zakat in order of purofication of our wealth and property.
Objective of Zakat, as emphasized in the Qur'an, is a glorious objective of purification and upliftment (Surah Al-Taubah). In this sense, Zakat washes away our sins in same way prayer does. It is mentioned in the sayings that Zakat carries the 'dirt' (awsakh) of people. When giving Zakat, intention of the individual should be based on fulfilling Allah's commandments. Giving Zakat with pure and sincere intentions will ensure rewards in the hereafter; Surah Al-Baqarah tells us that 'Allah will deprive usury of all blessing but will give increase for deeds of charity: For He does not love the one who is ungrateful and wicked.'
The Hadith of Prophet reinforces this concept very beautifully: When a slave of Allah pays Zakat, Angels of Allah pray for him in these words: "O Allah! Grant abundance to him who spends (in Your cause) and destroy him who does not spend and restricts to himself his wealth.'
Abdullah bin Abi Aufa narrated: When people brought Sadqah to the Prophet, he used to say, 'O Allah! Bless them with Your Mercy.'
When a Muslim pays Zakat, Allah increases his sustenance. Although at a human level it may seem that giving charity means reduction of wealth, in reality this is not the case. At a metaphysical level, Allah blesses the giver of Zakat to an extent that is beyond human perception. This is well-defined by the following Hadith: 'Charity does not diminish wealth.'
Benefits of Zakat for the individual and society:
Proves the faith and belief of Muslims
Shows truthfulness of faith of the one who gives away Zakat because man loves money so when he gives it for the cause of Allah, he proves that he sacrifices his love for the sake of Allah.
To purify character of the person by training him/her to be kind and generous
To fulfill needs of the poor in society
Protect the society from crime s and social class clashes (which will happen when the poor understand that they have a portion of finances of the rich) – this leads to better social cohesion and societal stability.
It drives a Muslim to learn about their duties to Allah – by reading this, that is what you are doing right now and in doing so, increasing religious knowledge.
Blesses properties by the will of Allah and increases them.
Circulates wealth in the society so that nobody can hold and monopolize it against social interest of people.