Zakat is a mandatory duty on all able Muslims who posses wealth at or above a certain threshold. This threshold is called the Nisab. You only pay Zakat if your net assets equal or exceed the Nisab threshold. Zakat should be calculated on 2.5% of all net savings one possesses that is above the nisab value. Net savings is the total maintained wealth for one lunar year before Zakat is due. If net yearly savings falls below this amount, he or she is exempt from paying Zakat. Only those people whose net capital exceeds the nisab values are obliged to give zakat.
worthiest of zakat: every muslim except syed or hashmi or the one who is the owner of 52.5% silver or gold according to its value ,cash money, trade goods and goods available more than the needs
Zakat money: cannot be given to them by whom you are given birth for example your parents , maternal parents , paternal parents etc and to whom you have given birth like son, daughter , grandson and grand duaghter etc. Even husband wife cannot give zakat to each other.
To pay zakat it is necessary to have an intention in mind of paying zakat to the worthiest and give him/her the authority of zakat without taking any pledge.