Zakat is obligatory on ten things: wheat, barley, dates, raisins, gold, silver, camels, cows, sheep & goats, and Business investment & goods based on obligatory precautions.
If anybody has one of these entities. He must pay a specified amount of Zakat, subject to the conditions described in Shariah Books.
It is a tax in Islam that Muslims consider an obligation. In other words, it is a form of worship. It is calculated based on a person’s wealth, including savings, investments, and other assets, and is typically a set percentage of that wealth. The exact amount of Zakat varies among different schools of Islamic law, but it is typically 2.5% of one’s net wealth.
The purpose of Zakat is to distribute a portion of one’s wealth for the benefit of the community, including the poor, those in need, and various religious and charitable causes. Zakat is one of the five pillars of Islam and it is an essential aspect of a Muslim’s faith.
In addition to being a religious obligation. Zakat is also seen as a means of purifying one’s wealth and reducing the hold that material possessions have on a person. It is also means of promoting social justice and helping to alleviate poverty in the community.