Zakah on shares when the owner has no income other than their returns
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Fatwa number ( 19768 )
Q: A family owns a group of shares that yield an annual return on which they live, and they have no other source of income. How is zakah calculated on these shares and their returns? Note that the actual value of these shares decreases annually due to the drop in the market value of the share, which sometimes forces the family to sell part of the shares themselves to meet their expenses. May Allah reward you with the best reward.
A: If the shares are fixed shares in an electricity company, a transport company, or the like, then zakah is obligatory on the yield of these shares if it reaches the nisab and a lunar year has passed over it. However, if these shares are in commercial speculation for the purpose of seeking profit, then zakah is obligatory on the capital if a lunar year has passed over it along with its profits, and the lunar year for the profits is the same as the lunar year for the capital.
And success is from Allah, and may Allah send prayers and blessings upon our Prophet Muhammad, his family, and his Companions.
Q: A family owns a group of shares that yield an annual return on which they live, and they have no other source of income. How is zakah calculated on these shares and their returns? Note that the actual value of these shares decreases annually due to the drop in the market value of the share, which sometimes forces the family to sell part of the shares themselves to meet their expenses. May Allah reward you with the best reward.
A: If the shares are fixed shares in an electricity company, a transport company, or the like, then zakah is obligatory on the yield of these shares if it reaches the nisab and a lunar year has passed over it. However, if these shares are in commercial speculation for the purpose of seeking profit, then zakah is obligatory on the capital if a lunar year has passed over it along with its profits, and the lunar year for the profits is the same as the lunar year for the capital.
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.