Zakat

paying an alms (or charity) tax to benefit the poor and the needy

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Zakat (Arabic: زكاة‎‎ zakāt, "that which purifies", also Zakat al-mal Arabic: زكاة ألمال‎‎, "zakat on wealth") is a form of alms-giving treated as a religious tax and/or religious obligation in Islam, which, by Quranic ranking, is next after prayer (salat) in importance.


ref: Quran

"The alms are only for the Fuqara' (the poor), and Al-Masakin (the needy) and those employed to collect (the funds); and to attract the hearts of those who have been inclined (towards Islam); and to free the captives; and for those in debt; and for Allah's Cause, and for the wayfarer (a traveler who is cut off from everything); a duty imposed by Allah. And Allah is All-Knower, All-Wise." [Al-Quran 9:60]

"They ask you as to what they should spend. Say: Whatever wealth you spend, it is for the parents and the near of kin and the orphans and the needy and the wayfarer, and whatever good you do, Allah surely knows it." [Al-Quran 2:215]

Who Should Pay Zakat?
Zakat is one of the five pillars of Islam. As such, it is compulsory on Muslims, provided they meet certain conditions and criteria. Any Muslim who possesses the required nisaab (the minimum amount of wealth that one must have before zakat is payable) for one whole year is bound to pay Zakat on that wealth. It is imperative that Muslims know exactly how much Zakat they owe and How to Calculate Zakat so that the right amount can be given to the intended recipient.

A lot of people choose Ramadan as the month in which they pay their zakat and for good reasons. Ramadan is the month of blessings and the rewards for all good deeds is far greater in this blessed Ramadan that in any other month.

Here’s what should be included in your Assets:

• Cash in the bank and at home
• Cash saved for any special purposes e.g. wedding, hajj, car purchase, etc.
• The value of Gold and Silver you own
• The value of Shares at their market price
• Money owed to you, which is highly likely to be repaid.
• If you own a business, the balance sheet value of the Stock you possess.
• If you own properties, any rental income that’s been saved.

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other non islamic & islamic source

Wikipedia  Bitannica  islamic help