Zakah (زكاة) is Arabic for obligatory charity (the third pillar of Islam). It constitutes a portion of wealth prescribed by shari’ah to be paid to one or more of deserving recipients. It is the duty of every Muslim to pay zakah out of his/ her own wealth, provided that a minimum amount of wealth (nisab) is attained over a lunar year.

• It is an ibadah (عبادة). It is a obligatory levy payable by people who have surplus income/wealth throughout the year over and above a minimum threshold. It involves the transfer of wealth from financially capable people to people whose incomes, if any, do not allow them to lead an honorable life like more fortunate members of the society.
• The categories of beneficiaries/recipients of zakah are clearly set out in the Holy Quran: the needy, for release of slaves, relief of debtors, new-converts, collectors of zakah, in the way of Allah and way-farers.
• Zakah is imposed on Muslims only, non-Muslims are not liable to pay zakah.
• Zakah is paid to purify income and hence it is not a financial burden but instead a source of relief for people who pay it out.