Zakat is obligatory on every Muslim (man or woman) who possesses 612 grams of silver or 87 grams of gold (nisab) or equivalent of cash or any other assets mentioned in the form below, upon the completion of one year.
2.5% of the total amount must be paid as Zakat.
Zakat can be paid only to those Muslims who do not have the equivalent amount of cash or assets valuing nisab after all monthly living expenses are paid.
Those entitled to Zakat are mentioned in the Quran as follows:
The poor (al-fuqarâ’), meaning low-income or indigent.
The needy (al-masâkîn), meaning someone who is in difficulty.
Those whose hearts are to be reconciled, meaning new Muslims and friends of the Muslim community.
Those in bondage (slaves and captives).
In the cause of God.
The wayfarer, meaning those who are stranded or traveling with few resources.
Zakat can't be paid to Sayyids, one's parents, grandparents, children or grandchildren. The fuqaha (jurists) state it is better to give Zakat to one’s family members when they are in need.
Zakat cannot be paid to Non-Muslims.
Prior years' Zakat which has not been paid till now must be paid immediately.