Zakah on shares intended for trade

Q 2: If I have shares in a joint stock company outside the Kingdom of Saudi Arabia, for example, in America, is it Wajib (obligatory) on me to pay Zakah (obligatory charity) on just the profits or on both the dividends and the capital? A 2: Zakah of shares intended for trade is due on both the capital and dividends upon the passage of a Hawl (one lunar year calculated from the time a property reaches the minimum amount upon which Zakah is due). The Hawl for the dividends is the same as the Hawl for the original capital. On the other hand, if the shares are intended for use but are not for sale, Zakah becomes due on just the profits. Q 3: When giving Zakah, I try my best to be as accurate as possible in calculating it. Yet perhaps there occurs an unintentional lack in Zakah. Does the Sadaqah (voluntary charity) that I give, apart from Zakah, cover the deficiency in Zakah, if any? A 3: It is Wajib on every Muslim to be as accurate as possible in calculating and giving Zakah whose amounts, praise be to Allah, are fixedly defined. Yet if unintentional deficiency occurs (Part No. 8; Page No. 167


A 2: Zakah of shares intended for trade is due on both the capital and dividends upon the passage of a Hawl (one lunar year calculated from the time a property reaches the minimum amount upon which Zakah is due). The Hawl for the dividends is the same as the Hawl for the original capital. On the other hand, if the shares are intended for use but are not for sale, Zakah becomes due on just the profits. Q 3: When giving Zakah, I try my best to be as accurate as possible in calculating it. Yet perhaps there occurs an unintentional lack in Zakah. Does the Sadaqah (voluntary charity) that I give, apart from Zakah, cover the deficiency in Zakah, if any? A 3: It is Wajib on every Muslim to be as accurate as possible in calculating and giving Zakah whose amounts, praise be to Allah, are fixedly defined. Yet if unintentional deficiency occurs (Part No. 8; Page No. 167) in giving Zakah after sparing no effort in this regard, the Sadaqah you give voluntarily makes up for the deficiency in the obligatory Zakah, as indicated by the Sunnah (whatever is reported from Allah's Messenger, peace be upon him).May Allah grant us success. May peace and blessings be upon our Prophet Muhammad, his family, and Companions.


Tags: