“Take from their money a charity to cleanse them and purify them” – Qur’an 9:103.
Zakat is the amount of money that every adult, mentally stable, free, and financially able Muslim, male and female, has to pay to support specific categories people. This category of people is defined in surah at-Taubah (9) verse 60: “The alms are only for the poor and the needy, and those who collect them, and those whose hearts are to be reconciled, and to free the captives and the debtors, and for the cause of Allah, and (for) the wayfarers; a duty imposed by Allah. Allah is knower, Wise.” (The Holy Qur’an 9:60).
The obligatory nature of Zakat is firmly established in the Qur’an, the Sunnah (or hadith), and the consensus of the companions and the Muslim scholars. Allah states in Surah at-Taubah verses 34-35: “O ye who believe! there are indeed many among the priests and anchorites, who in Falsehood devour the substance of men and hinder (them) from the way of Allah”.
Zakat is obligatory when a certain amount of money, called the nisab is reached or exceeded. Zakat is not obligatory if the amount owned is less than this nisab.

Nisab is the minimum amount of wealth required to make a person liable to pay Zakat.
The nisab (or minimum amount) of gold and golden currency is 20 mithqal, this is approximately 85 grams of pure gold. One mithqal is approximately 4.25 grams. The nisab of silver and silver currency is 200 dirhams, which is approximately 595 grams of pure silver. The nisab of other kinds of money and currency is to be scaled to that of gold, 85 grams of pure gold. This means that the nisab of money is the price of 85 grams of 999-type (pure) gold, on the day in which Zakat is paid. (Current Gold Prices)

At any day of the year (eg 21st Ramadan) add up the value of your gold, silver, savings, cash, shares etc – these are your total assets. Minus from this any money you owe and any bills immediately due – these are your liabilities. If the balance is more than the nisab value, then you have to pay Zakat of 2.5% on the whole amount.

Zakat is only due on assets held for more than a lunar year. Zakat is not due on your main home. Mortgage loans should not be deducted from your assets. Businesses also need to pay Zakat on their profits and stock.

If the nisab is $2,840 (PKR298,484) this Ramadan – and you have savings of $1,313 (PKR 137,996) and gold worth $1,970 (PKR 207,047) (Total $3,284)(PKR 345,148) , then you have to pay 2.5% of the whole amount as Zakat – which = $82 (PKR 8,618).