Question: When does Zakaah (obligatory charity) become obligatory? When should it be paid and who are its deserving recipients?
Answer: Zakah on wealth becomes obligatory if a Muslim possesses the Nisaab (the minimum amount on which Zakaah is due) and it is kept in possession for a Hawl (one lunar year calculated from the time a property reaches the minimum amount upon which Zakaah is due), provided that the owner is a free person. The amount of Nisaab for gold is twenty Mithqaal (1 Mithqaal = 4.25 grams) which is equal to approximately 92 gm. while the Nisaab for silver is 200 Dirhams which is equal to 56 Saudi Riyals. If a person possesses the Nisaab and kept it for a full lunar year, Zakaah becomes due on it, which is one quarter of one tenth. For example, the Zakaah of 100 Riyals is 2.5 Riyals and for 1000 Riyals it is 25 Riyals, and so on… read more here.