The amount of payment and distribution was defined at Medina in the Second year of Hijrat.
The payment of Zakat is compulsory on every adult, free Muslim who owns property to the extend of the prescribed rate called Nisab, provided such property has remained in his ownership and possession uninterruptedly for full one year. Zakat is is payable on cash, gold and silver, jewellery, crops, animals, minerals, agricultural lands and all kinds of commercial goods.
1. On cash, gold and silver: Zakat is paid at a rate of 2 h%. A person who possesses 52 h tolas of silver or’ 7 h tolas of gold is liable to pay Zakat.
2. Produce from Mines: Owners of mines have to pay one-fifth of the produce of mines. This is called Khums.
3.Land Tax: The basis of this compulsory tax on the produce of agricultural lands called Ushr is to be found in the Quran. It is levied at the rate of one-tenth of the agricultural produce of land benefiting by rain or some natural spring, and one-twentieth of the produce of artificially irrigated lands.
4. On all articles of trade exceeding 200 dirhams.
5. On Sheep and Goats: For every forty sheep or goats- one goat; from 121 to 200 sheep or goats-two sheep or two goats; and over, that for every hundred sheep or goats, one sheep or goat is to be received by the state.
6. Bulls, Cows and Buffaloes: On thirty to forty cattle, one calf of one year, on every forty cattle, a two year old calf.
7. On Camels: On every five camels, one goat or sheep; from ten to fourteen camels, three goats; and from twenty-five to thirty-five camels, a female camel and so on. Sadaqah-ul-Fitr: This obligatory charity is an act of worship on the completion of the month of Ramazan. it is obligatory on all Muslims on whom Zakat is compulsory.
