Zakah on Currency, Real Estate, and Stocks
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Fatwa No. ( 18282 )
Q: My father passed away and left me an inheritance in the form of rented real estate, cash, and shares in a company. I ask you to kindly specify the zakah that is due from me, its amount, and the time for its payment. The details are as follows: 1- Cash: I have spent most of it on my needs and my family's needs, and the lunar year (hawl) has only elapsed on one-quarter of it. What is the ruling? 2- Rented real estate: Part of it was sold, and part remains for investment. As for the value of the sold portion, more than half of it was spent, and the lunar year elapsed on the amount less than half. What is the ruling? 3- Company shares: Part of them was sold, but it was spent immediately. The remaining part consists of shares whose market price is fluctuating and has been continuously declining until it reached half the value it once attained. What is the ruling on zakah for each part of what I have mentioned? Note that the company paid me 5% of the value of my shares held in it as profits. Is zakah due on this? Please provide a comprehensive answer so that I may fulfill the obligation, if Allah wills, and may Allah reward you with good.
A: Regarding cash, whatever has reached the lunar year (hawl) and is at the minimum threshold (nisab) or more, zakah is obligatory on it at the rate of one-quarter of a tenth, i.e., two and a half percent (2.5%), with the understanding that the lunar year for the profit is the same as the lunar year for the capital.
Regarding rented real estate, there is no zakah on the property itself, but zakah is due on its rent if it reaches the minimum threshold (nisab) on its own or when combined with other assets, and the lunar year (hawl) has elapsed on it from the time of the contract. Regarding commercial shares that are bought and sold, zakah is obligatory on them if their value reaches the minimum threshold (nisab) and the lunar year (hawl) has elapsed on them, and their profits follow them in the obligation of zakah, with the lunar year for the profits being the same as the lunar year for the principal. As for fixed shares that are invested in and not intended for sale, such as those in real estate, factories, and the like, zakah is obligatory on their yield if the lunar year (hawl) has elapsed on it from the time it is obtained and it reaches the minimum threshold (nisab). And success is from Allah, and may Allah send prayers and blessings upon our Prophet Muhammad, his family, and his Companions.
Q: My father passed away and left me an inheritance in the form of rented real estate, cash, and shares in a company. I ask you to kindly specify the zakah that is due from me, its amount, and the time for its payment. The details are as follows: 1- Cash: I have spent most of it on my needs and my family's needs, and the lunar year (hawl) has only elapsed on one-quarter of it. What is the ruling? 2- Rented real estate: Part of it was sold, and part remains for investment. As for the value of the sold portion, more than half of it was spent, and the lunar year elapsed on the amount less than half. What is the ruling? 3- Company shares: Part of them was sold, but it was spent immediately. The remaining part consists of shares whose market price is fluctuating and has been continuously declining until it reached half the value it once attained. What is the ruling on zakah for each part of what I have mentioned? Note that the company paid me 5% of the value of my shares held in it as profits. Is zakah due on this? Please provide a comprehensive answer so that I may fulfill the obligation, if Allah wills, and may Allah reward you with good.
A: Regarding cash, whatever has reached the lunar year (hawl) and is at the minimum threshold (nisab) or more, zakah is obligatory on it at the rate of one-quarter of a tenth, i.e., two and a half percent (2.5%), with the understanding that the lunar year for the profit is the same as the lunar year for the capital.
Regarding rented real estate, there is no zakah on the property itself, but zakah is due on its rent if it reaches the minimum threshold (nisab) on its own or when combined with other assets, and the lunar year (hawl) has elapsed on it from the time of the contract. Regarding commercial shares that are bought and sold, zakah is obligatory on them if their value reaches the minimum threshold (nisab) and the lunar year (hawl) has elapsed on them, and their profits follow them in the obligation of zakah, with the lunar year for the profits being the same as the lunar year for the principal. As for fixed shares that are invested in and not intended for sale, such as those in real estate, factories, and the like, zakah is obligatory on their yield if the lunar year (hawl) has elapsed on it from the time it is obtained and it reaches the minimum threshold (nisab). And success is from Allah, and may Allah send prayers and blessings upon our Prophet Muhammad, his family, and his Companions.
Source
www.alifta.gov.sa
The Arabic text is copied verbatim from the original source, without any edits.