- EN (English)
| Fatwa ID: | 76499 |
| Title: | Zakat on stocks II |
| Category: | Poor-due or obligatory charity (Zakaah) |
| Scholar: | Dr. Main Khalid Al-Qudah |
| Date: | 09/23/2008 |
Assalamu alaikum,
I would like to thank you for answering my question on amjaonline regarding paying zakat on stocks: http://www.amjaonline.com/en_f_details.php?fid=23456 and I was hoping you could answer a few further questions I have.
1) You said I only have to pay zakat on the profit, not on the initial investment. Why is this, when, if my grandfather had not purchased the stock, and instead had put the money aside in savings, I would need to pay zakat on the whole thing? To me, it seems I should pay zakat on the total value of the stocks. Am I wrong?
2) This is my seventh Ramadan, and so far I have not paid zakat on the stock. Does this mean I have to pay 2.5% X 7 (17.5% of the current value)? Or do I have to go back and find out the value of the stock for each year on the zakat due date and calculate 2.5% of each year?
3) Since I have little wealth other than this, I will have to sell stock to pay the zakat. What about the fees I will be charged in order to sell the stock to pay zakat ($15 +$.10 per share)? Do I pay this in addition to the zakat?
4) How do I compensate for the discrepancy in time between when I calculate the zakat, and when I donate it? (Once I calculate my zakat and request the stock to be sold, it will take a week or so to receive the check and deposit it to pay the zakat.) Since zakat should not be delayed, should I borrow money to pay the zakat amount until I receive the check?
5) What about debts owed to me? Do I pay zakat on that money even though I don't physically possess it?
6) How about mahr that has not yet been paid to me? Do I have to pay zakat on it? If yes, is it 2.5% for every year since we got married that I haven't paid zakat on it (ex: been married four years, so I owe 2.5% of the amount x 4)?
I am sorry if this seems like too many questions, but zakat is a heavy matter and I don't want to do it wrong. Jazakum Allah khairan.
1- Regardless of the original source of money of the stocks you have, you need to deal with the assets you have and what kind of Zakah is due on them. What if you use this money to buy a house for residential purposes, would you still have to pay Zakah on the house? The answer is definitely no.
2- You need to find out the profit you had every single year and pay its Zakah separately. Paying 17.5% on the current stocks you have would be the wrong way to calculate your Zakah.
3- All fees you pay to sell stocks are to be deducted from the Zakah pool or the net amount liable to Zakah.
4- Do not pay for the discrepancy. This period of time will be included in the next cycle or fiscal lunar year.
5- No Zakah is due on the debts others owe you until you get the money back and have full access to it.
6- Once you receive your dowry (mahr), you need to pay its Zakah after one year if it is still in your possession, but if you have already spent it, then no Zakah is due.
