Zakaat can’t be given to Syed people
It is among the conditions of Zakaat that it should not be given to a Syed person meaning a person who is from the Prophet’s family, i.e. Bani Hashim. Bani Hashim means the progeny of Hadhrat Ali, Hadhrat Abbas, Hadhrat Jafar, Hadhrat Aqeel and Hadhrat Harith (May Allah be well pleased with them). As given in Fatawa A’alamgiri, Vol. 1, Pg. No. 189.
Zakaat is the filth of the wealth, i.e. wealth is cleaned through Zakaat. Thus, giving it to the Syeds is against their respect and honor. Allah Most High says in the Holy Quran:
Allah intends only to remove all impurity of sins from you, O People of the House (of the Prophet, [even a doubt or trace of shortfall,]) and make you absolutely pure and clean by blessing you with (perfect) purity and wholesomeness. Surah Ahzaab (33:33)
There is a Hadith in Sahih Muslim:
Translation: This charity is in fact the filth of the wealth. Neither are these permissible for Hadhrat Muhammad (Sallallahu alaihi wa sallam) nor for His family. (Sahih Muslim, Hadith No. 2531)
For this reason, the Shariah has decreed giving Zakaat to them as impermissible. If Zakaat is given to them, it is not valid. In light of the respect and honor of the descendents of the Holy Prophet (Sallallahu alaihi wa sallam), Muslims should offer them pure and unblemished wealth and gifts.
If a person who belongs to the Prophet’s family is needy, then one can help them through gifts and donations. The Holy Prophet (Sallallahu alaihi wa sallam) has given glad tidings for the person who fulfills any need of His family, as mentioned in the following Hadith:
Translation: There are 4 such lucky people for whom I will intercede on the Day of Judgment: (1) The one who respects and honors my family (i.e. the Ahle Bait). (2) The one who offers them things which they need. (3) The one who manages their affairs when they need it. (4) The one who loves them with the heart and the tongue. (Kanz Ul ‘Ummal, Hadith No. 34180; Jame’ Ul Ahadeeth, Hadith No. 3103)