WORLD RELIGIONS

Detailed explanation-1: -Zakat is an Islamic financial term. As one of the pillars of the faith, it requires all Muslims to donate a portion of their wealth to charity. Muslims must meet a certain threshold before they can qualify for zakat. The amount is 2.5% or 1/40 of an individual’s total savings and wealth.

Detailed explanation-2: -Zakat is the third Pillar of Islam. Zakat does not refer to charitable gifts given out of kindness or generosity, but to the systematic giving of 2.5% of one’s wealth each year to benefit the poor. The 2.5% rate only applies to cash, gold and silver, and commercial items.

Detailed explanation-3: -Zakat on wealth is based on the value of all of one’s possessions. It is customarily 2.5% (or 1⁄40) of a Muslim’s total savings and wealth above a minimum amount known as nisab each lunar year, but Islamic scholars differ on how much nisab is and other aspects of zakat.

Detailed explanation-4: -Charity In Islam-Zakat It denotes the amount of wealth that a Muslim is obligated to donate to underprivileged and disadvantaged people. Any Muslim, whose personal wealth exceeds the nisab (threshold of wealth) must pay Zakat, usually 2.5%, with exceptions for those who are unable to do so.