Sayyiduna Ali (may Allah be pleased with him) narrated from the Prophet (peace and blessings be upon him) in a marfu’ report that: “I have exempted zakat on horses and slaves, so give zakat on silver: one dirham out of every forty dirhams, and there is no zakat on one hundred and ninety-nine dirhams, until it reaches two hundred dirhams.”
Hadith Referenceسنن دارمي / من كتاب الزكاة / 1667
Hadith Gradingتحقیق (حسین سلیم أسد الدارانی):إسناده جيد أبو عوانة لم ينفرد به بل تابعه عليه كثير ومنهم الأعمش، [مكتبه الشامله نمبر: 1669]
From these ahadith, the nisab (minimum threshold) for silver is known, which is one-fortieth out of two hundred. It is also understood that items for personal use—such as horses, servants, and maidservants that are for private use and service—are not subject to zakat. Cars and similar items will also be analogized upon this; any of these things that are for trade or rental purposes will be liable for zakat. Imam Darimi rahimahullah has not mentioned the zakat of gold in these chapters, which is established from authentic ahadith. The nisab for gold is one-fortieth of twenty dinars, i.e., half a dinar, and twenty dinars is equivalent to seven and a half tola.
In current weights, the nisab for silver is approximately 595 grams and for gold is 92 grams. That is, when gold or silver reaches this amount, it is obligatory to give one-fortieth as zakat, whether the gold or silver is in the form of coins or jewelry. The fatwa of Shaykh Ibn Baz rahimahullah is also that zakat is obligatory on jewelry. The better method is that if gold or silver is present in the mentioned amount, then after a year passes, calculate their value and give two and a half percent zakat on every hundred.
On one thousand, it is 25; on ten thousand, it is 250; and on one hundred thousand, it is 2500, and so on by analogy. It should be clear that the nisab for rupees, money, riyals, or any currency is the same as that for dirhams and dinars, and zakat must be paid at the rate of two and a half percent, as has just been mentioned above.