Zakah on the shares whose owner has nothing other than their proceeds

Q: A family possesses some shares that earn them a yearly income for their living expenses. This is the only source of income for them. How can Zakah (obligatory charity) due on these shares and their proceeds be calculated? It should be known that the real value of these shares decreases every year due to the drop in the market value of shares, which sometimes forces the family to sell part of the shares to meet their expenses. May Allah reward you with the best of rewards. A: If these are fixed shares in an electricity or transportation company or the like, Zakah becomes due on the yields of these shares once they reach the Nisab (the minimum amount on which Zakah is due) and a Hawl (one lunar year calculated from the time a property reaches the minimum amount upon which Zakah is due) passes on them. On the other hand, if these shares are used in speculative transactions to gain profit, Zakah becomes due on both the capital along with its profits upon the passage of a Hawl. The Hawl for the dividends is the same as the Hawl for the original capital. (Part No. 8; Page No. 176


A: If these are fixed shares in an electricity or transportation company or the like, Zakah becomes due on the yields of these shares once they reach the Nisab (the minimum amount on which Zakah is due) and a Hawl (one lunar year calculated from the time a property reaches the minimum amount upon which Zakah is due) passes on them. On the other hand, if these shares are used in speculative transactions to gain profit, Zakah becomes due on both the capital along with its profits upon the passage of a Hawl. The Hawl for the dividends is the same as the Hawl for the original capital. (Part No. 8; Page No. 176) May Allah grant us success. May peace and blessings be upon our Prophet Muhammad, his family, and Companions.


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