Lit: blessing, purification, increase or cultivation of good deeds. An obligatory contribution or tax which is prescribed by Islam on all Muslim persons having wealth above an exemption limit at a rate fixed by the Shari’ah.  Zakat is the third pillar of Islam. According to the Islamic belief Zakat purifies wealth and souls.  The objective is to take away a part of the wealth of the well-to-do and pay it to the Islamic state in the absence of which distribute it among the poor and needy.  It is levied on cash, cattle, agricultural produce, valuable assets, capital invested in industry or business or any other forms that could be termed as wealth.  The distribution of Zakat fund has been laid down in The Qur’an “Alms are for the poor and needy, and those employed to administer the (funds), for those whose hearts have been (recently) reconciled (to Truth); for those in bondage and in debt; in the cause of Allah; and for the wayfarer: (thus is it) ordained by Allah…” (9:60). Also known as Zakah.