Obligatory Elms (Zakah)
It is obligatory on all Muslims who have wealth beyond a prescribed amount (Nisaab) to pay a fixed proportion of their wealth as Zakah at the end of each financial year. Zakah is a form of financial act of worship and Muslims discharge it with a spirit of obedience to Allah سبحانه وتعالى. There are also prescribed beneficiaries of Zakah which include the poor, the destitute and the people in emergent needs. Payment of Zakah purifies the wealth and earns you countless eternal rewards. The system of Zakah is the backbone for establishing social justice and security in a Muslim society. Financial commitments should not stop one from paying Zakah when it is due; because there are strict warnings for ignoring this responsibility.
There are certain rules that should be observed when paying Zakah. There should be no element of ill-treatment or exploitation of the poor. The intention should be purified to please Allah سبحانه وتعالى and not be aimed at earning good name or fame. Apart from the fixed amount of Zakah to be paid yearly, optional charity from the wealth beyond one’s needs can be spent for the help of needy, public welfare projects and publication of Islam. All acts of charity are very valuable and Allah سبحانه وتعالى has promised great rewards for those who spend their wealth for His cause.
Note: For detailed knowledge about your liability of payment of Zakat, items of property on which Zakat is paid, items which are exempted and venues where you should discharge your Zakat, please consult an authenticated Islamic scholar (Mufti) or his authorized deputy in your locality.