Ibn `Umar (May Allah be pleased with them) reported: The Messenger of Allah (PBUH) said, "(The structure of) Islam is built on five (pillars): Testification of `La ilaha illallah (none has the right to be worshipped but Allah), that Muhammad (PBUH) is his slave and Messenger, the establishment of Salat, the payment of Zakat, the pilgrimage to the House of Allah (Ka`bah), and Saum during the month of Ramadan."[Al-Bukhari and Muslim].
This Hadith has already been mentioned. Here it is repeated to emphasize that Zakat is one of the five pillars of Islam. Every Muslim who has fifty-two and a half Tola (a Tola is about 12 grams) silver or cash equivalent to it in excess of his need, and a year has passed since its possession is liable to pay it. One who has seven and a half Tola or more gold also comes in this category. It should be evaluated in terms of money and Zakat at the rate of 2.5% to be paid on it.