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Zakatul Mal
Zakat al–Mal (commonly called “Zakat“) is due when a person’s wealth reaches the nisab amount and can be paid anytime during the year. Zakat must be used to directly assist those in need; a few examples are feeding them, clothing them, sheltering them or educating them. Zakat al-Mal is calculated by taking 2.5% of his/her total wealth.
Zakat al-Fitra is paid by the head of the household for each member of the family, before Eid ul-Fitr prayer. This is also referred as Fitra. The head of a family may pay Zakatul Fitr (Fitra) on behalf of his/her family. It is charity given to the poor towards the end of the month of Ramadan, serving two purposes:
To complete and purify one’s fasts. The Prophet Muhammed (PBUH) said: “The fasting of the month of fasting will hanging between Earth and Heavens and it will not be raised up to the Divine Presence without paying the Zakat al-Fitr”.
To spread joy of Eid ul-Fitr by fulfilling the needs of the poor and needy.