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256. " there is no compulsion in religion. truly the right way has become
clearly distinct from error. therefore,
whoever rejects false deities (taghut) and believes in allah,
has grasped the firmest handle, that shall never break;
and allah is all-hearing, all-knowing."

occasion of revelation:
there was a man from medina by the name of abu¥-h¤as¤een who
had two sons. some of the christian merchants, who used to import
merchandise from abroad into medina, invited those two lads to
christianity whenever they met them in medina. those two young men
were seriously affected by them, too.

abu-haseen became very inconvenient from that condition. he
went to the prophet (p.b.u.h.) and, informing him the matter, requested
him to bring those children back to their own religion. he asked
whether he could bring them forcefully to islam. then, the verse was
revealed and manifested this fact that there is no compulsion in
accepting the religion.

commentary:
 the previous verse, 'ayat-ul-kursiy, infact, was a collection of
unity and the attributes of allah, beauty and glory, which make up
the foundation of the religion. this meaning is acceptable in all stages
with reasonable proofs. that is why embracing the faith needs not any
compulsion or force, and in this verse, it says:

" there is no compulsion in religion. truly the right way has become
clearly distinct from error. ..."

this verse is a serious answer to those who imagine that islam
applies obligation and has developed and spread through the force of
sword and martial power.

then, as a conclusion of the previous verse, it adds:

"... therefore, whoever rejects false deities (taghut) and believes in allah,
has grasped the firmest handle, that shall never break; ..."

and, at the end of the verse it continues saying:

"... and allah is all-hearing, all-knowing."

this concluding phrase is a hint to the fact that the problem of
belief and disbelief is not something that can be fulfilled by mere
pretence, because allah hears the words of all entirely, whether they
state openly or they speak privately and hiddenly.