Zakat is an Islamic concept which means giving a portion of one’s wealth to those in need. The word Zakat means purification and growth.
Zakat is a mandatory charitable contribution, one of the Five Pillars of Islam, that must be given by Muslims who are able to do so. The amount paid in Zakat depends on the person’s income and assets, with different rates for different types of assets.
Zakat is payable at 2.5% of the wealth one possesses above the nisab. Nisab, which is equal to 85 grams of 24k gold