The zakah on land traded for sale and purchase, and on shares
Machine translationRead the Arabic original
Question:
Honorable Shaykh, Abu Salim says: A person bought land, then sold it for cash, then bought another piece, then sold it for cash, and did this several times. Then he invested in a shareholding for several thousand. The question is about this shareholding: is the lunar year (hawl) based on the land, or is it based on the cash, or does he start a new count?
Answer:
The hawl (lunar year of possession) applies to the money. So, if the hawl is completed on the money he uses for buying and selling, it suffices to pay the zakah on it along with its profits. Yes.
Honorable Shaykh, Abu Salim says: A person bought land, then sold it for cash, then bought another piece, then sold it for cash, and did this several times. Then he invested in a shareholding for several thousand. The question is about this shareholding: is the lunar year (hawl) based on the land, or is it based on the cash, or does he start a new count?
Answer:
The hawl (lunar year of possession) applies to the money. So, if the hawl is completed on the money he uses for buying and selling, it suffices to pay the zakah on it along with its profits. Yes.
Source
75-اللقاء الأسبوعي مع الشيخ صالح الفوزان - 22 — archive.org (58:23)
The Arabic text is a machine transcription of the audio recording.