Zakat is one of the five pillars of Islam. It purifies the money and it also helps in growth of a society by providing money to the poor people. The purpose of zakat reflects its meaning the word zakat means both purification and growth.
Who should pay zakat
On whom zakat is obligatory? Every person who is mentally and financially stable and is able to pay zakat has to pay it. Then comes the next requirement that is he should have certain amount of money that is equal to or more then nisab. Nisab is a fixed amount of money, property and jewelry of gold and silver that determines that either the person is eligible to pay zakat or not. If a person has amount of wealth that is equal to or more than nisab then it is compulsory for him to pay zakat otherwise he will be punished by ALLAH that is clearly mentioned in the Holy QURAN.
The time of payment of zakat
If a person owns an amount of wealth according to nisab for more than a lunar year then it is obligatory for him to pay the amount of zakat .
In this way our money is being purified by taking a small amount of it for those who needs it. It also helps in growth and prosperity of a society as by paying zakat the wealthy people of the society are not only saving their money but they are spending their money to help the poor ones in order to please ALLAH. Through this systematic way the money revolves around the whole society and not just among the few rich ones of the societies.
Who are eligible to receive zakat
The people who are eligible to receive zakat are clearly described in Quran they are defined by eight categories which can be easily seen in surah 9 verse 60 of Holy Quran.