Scholars have established special conditions or requirements for zakat to be incumbent on the individual. Some of these conditions are related to the person that pays the zakat and others to the property itself.

1. Islam: Zakat is only incumbent on Muslims. This is because it is one of the pillars of Islam. Allah says, "Take from their wealth a sadaqa in order to purify them and sanctify them with it, and invoke Allah for them. Verily! Your invocations are a source of security for them". [9:103] This verse is addressing Muslims and not the disbelievers. This shows that zakat is not mandatory upon the disbelievers and it is not to be collected from them unless they embrace Islam.

2. Takleef :(Legal Competency for Obligation). Some scholars have placed the conditions of buloogh (reaching the age of puberty) and sanity (intellectual and emotional stability) for the mandate of zakat. They say that, "zakat is not mandatory on the wealth of those who are not mukallaf (competent persons obligated to observe the precepts of religion)." This is so because the zakat is an act of worship and acts of worship require intention. However, these people cannot have any intention considered confident or reliable. Other acts of worship such as salah, fasting and hajj are also not required from them.

3. Intention: The validity of zakat depends upon the expression of one's intention. The one paying the zakat should pay it, believing that it is an obligation to be discharged. The Prophet, sallallaahu wa alayhe wa sallam, said, "The value of one's deeds is determined by one's intentions". Zakat is an act of worship. Therefore, it should be associated with intention.

4. Complete Possesion Of Wealth: The real owner of the wealth is Allah and Allah has, out of His Grace and Generosity, granted man succession to it. He has entrusted man with it so that man can use it and dispose if it according to the Law of the Real Owner. Allah says, "And give them something out of the wealth of Allah which He has bestowed upon you". [24:3] He also says, "Believe in Allah and His Messenger, and spend of that whereof He has made you trustees". [57:7]

The meaning of complete possession of wealth, in this instance, is that wealth is within the hands of a particular person and that such wealth is free from any rights by others. This person has the right to dispose of and use the wealth as he wills. He must have the possibility of benefiting from his possession and must be personally designated. Two important concerns should be noted regarding this condition:

The money is designated to its owners. This meaning is indicated in many verses in the Qur'an among which is the following: "Take from their wealth a sadaqa" [9:103] and "And those in whose wealth there is a known right for the needy who ask, and for those who are deprived (of wealth)". [70:24-25] This designation suggests possession. They may use and dispose of their wealth, as they will.

Zakat is to give possession of the wealth to its recipients. In order to do so, the person should possess the wealth. How can a person give away money to others that does not belong to him? There are also other circumstances and conditions under which, a person's wealth or a portion thereof, is not liable for zakat.

Wealth With No Owner: Such as the moneys of the state collected by zakat, taxation or other sources. There is no zakat on these moneys because they belong to the entire community, including the poor.

Waqf:(endowments) of a public sector. Moneys from sources such as masajid, orphans, schools, etc. are not subject to zakat according to sound opinions. Nor is the one-third or less portion from the will of the deceased.

Unlawful Wealth: Unlawful wealth may include wealth attained from theft, extortion, forgery, bribery, monopoly, riba, cheating, etc. One should return such moneys to their rightful owners for their inheritors. If one does not know who they are, then the moneys should all be given to the poor and not kept. If a person is insistent upon keeping possession of this type of wealth, and the wealth is still present after a complete year has passed, it then becomes liable to zakat.

When a debt is involved, who is responsible to pay the zakat on it, the lender or the debtor? Is the debt even subject to zakat? The majority of scholars have classified debts into two categories: the good debt and the bad debt.

A debt that is acknowledged by the debtor with a willingness to repay it is a good debt. The lender should pay the zakat on this type of debt after each hawl (one Islamic calendar year).

A bad debt is one where there is no hope of receiving repayment because the debtor is insolvent or he denies the debt and there is no proof of it. There are different opinions regarding this issue. Some scholars have said that when the lender receives payment he should pay zakat on all the previous years owed. Others maintain that when the lender receives repayment he pays zakat for one year only. Others hold that the lender doesn't have to pay zakat on it at all.

5. Increased Wealth: Wealth should be such that it produces a profit or benefit its owner. There are two types of growth in wealth; real growth and assumed growth. Real growth is similar to the growth and increase of wealth in business or in multiplication, such as the multiplication of sheep and camels.

Assumed growth is similar to the capability of wealth to grow if it is used in business projects. Jurists have made conclusions on this condition from the following Hadith: "The mare and the slave of Muslim are not subject to zakat" (Muslim). The Prophet, sallallaahu wa alayhe wa sallam, clearly avoided zakat on wealth used to meet the genuine requirements of livelihood or for personal use. Based on this, jurists have stated that the reason for subjecting wealth to zakat is its actual growth. So there should be no zakat on wealth saved for basic requirements, such as food, clothes, housing, and other basic needs.

6. Condition Of Nisab: Zakat should be paid on any amount of growing wealth that reaches nisab, which is estimated as three ounces of pure gold valued at $1990 in March, 2007.

Excessive Wealth: Moneys have to exceed the amount needed by the giver. If the person is in need of the money that he has, to cover his basic needs, then he is not supposed to pay zakat. There is no point in charging the needy. Jurists have defined the basic needs accurately and realistically. They state that it is what may protect and provide man with bare necessities to make a life, such as housing, food, clothing, etc. It also implies the inclusion of a debt from what he possesses of the nisab; it also included craft machinery, furniture, transportation or books, etc.

7. Passing Of A Hawl: A hawl, or one complete Islamic calendar year (lunar year 354 days), should pass with the wealth being in possession by its owner. This condition is related to livestock, money and commercial commodities.