Zakat is one the forth pillar and obligations of islam. It is to be payed by every sahib-e nisab among the muslims.The individuals who have wealth beyond their needs and it are saved till the end of the Islamic fiscal year the 2.5 % share of it must be deducted as zakat.Zakat can’t be paid on cash earned from haram sources.There are several benefits associated with zakat which the modern economic and monetary systems claim to produce but fail to do so in real.
Allah says: “And let not those who hold back miserly from giving that which Allah has bestowed on them from His Bounty think that it is good for them. Nay, it will be worse for them. The things that they held back from giving will be tied to their necks like a collar on the Day of Recompense. And to Allah belongs the heritage of the heavens and the earth, and Allah is well-Aware of all that you do.” [Surah Aali ‘Imraan: 180]
Abu Hurairah (radyAllaahu ‘anhu) reported that Allah’s Messenger Prophet Mohammed (sallAllaahu ‘alayhi wa sallam) said: “Whoever Allah has given money to and does not give his Zakat for it, it will take the form of a shiny-headed male serpent with two black spots over its eyes, which will encircle him on the Day of Judgement and bite his cheeks saying: ‘I am your money, I am your wealth.”
Zakat Benefits :
1. The most important benefit of zakat is the purification of the halal money. Once zakat is paid, money becomes pure and in goes under the confirmation of ALLAH swt. Hence a person who is zakat payer will never see short of rizq except ALLAH’s will.
2. Zakat keeps the money flow inside society in balance and consistent. The sahib-e nisab pay zakat which is gotten by poor people hence the money inflow remains same and constant.
3. The money flow in a muslim zakat paying society is descending i.e. from top to bottom. In this way what rich people have they also give a share of it to the poor people and keep them live like humans unlike the life of the poor we see today.
4. Since the money inflow remains downward so the society finally reaches at the point to eradicate poverty, which is dream of modern economic masters.
5. Demand increases and economy develops because every person reaches at a point to purchase with easily subsequently business develops.
6. Supply increases. To meet the demand suppliers also increase their market supplies hence they get reasonable opportunity to build their business.
7. Life standard rises since everybody can buy the basic necessities of life without spreading their hands before others.
8. It eradicates begging.
9. Unemployment erases because progressive economy always needs more and more workers.
10. The low standard commodities cannot make place in a well balanced economy.
11. The moral degradation of society lowers and ultimately finishes because the frustration of people and their depression lowers down.
12: A dynamic economy makes a strong state.