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Zakât (or Zakaat or Zakah) (English:tax, alms, tithe) (Arabic: زكاة, Old (Qur'an) Arabic: زكوة) is the third of the Five Pillars of Islam in Sunni Islam and one of the eleven Branches of Religion in Shia Islam. Its literal meaning is 'to grow (in goodness)' or 'increase', 'purifying' or 'making pure'. It is prescribed in the Qur'an.
A muslim may also donate an additional amount as an act of voluntary charity (sadaqah), in order to achieve additional divine reward. There are two main types of zakat :
Zakat on self is a per head payment equivalent to about US$1.30 per head (originally in terms of wheat or dates or rice of about 2.25 kilogram) paid during the month of Ramadan by the head of a family for himself and his dependents to the zakat collector (amil). Zakat on wealth comprises all the other types of zakat, such as on business, on savings, on income, on crops, on livestock, on gold, on minerals, on hidden treasures unearthed, etc. The payment of Zakât is obligatory on all Muslims. In current usage it is interpreted as a 2.5% levy on most valuables and savings held for a full year if their total value is more than a basic minimum known as nisab (the value of 3oz of gold). At present nisab is roughly $1,300 or an equivalent amount of any other currency. Zakat is distributed among 8 asnaf (categories) of people, namely:
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