Salaam all, like the title already says I want to know how to calculate zakat on stocks.
I made a research and found many ways this are which made sense too me.
Short term holding(1 year approximately ):
You have to pay on the whole current stock price 2,5% Zakat.
Example: You have 100 stocks and the share price is 100€ on the day you calculate and give your zakat. Then you have to pay on the 10.000€ 2,5% zakat. Which is 250€.
Long term:
First option;
You only have to pay on the current assets of the stock the zakat.
Example: 10.000€ worth on stocks.
The company has 60% of current assets. So the amount which is zakatable is 6000€. 2,5% on 6.000 is 150€.
Some people say. I also have to take the currents assets in ratio with the market cap. But i am not sure if I understood it right.
The second long term option: Also paying 2,5% on the whole amount of stocks. 10.000€ worth on stocks than 250€ zakat like the short term holding option.
However, the dividends have to be seen like cash and be paid zakat 2,5% regardless of the option u use.
How do you calculate your zakat? Which option is the best? Calculating 2,5% of the whole amount and being safe?
Edit: changed non current assets to current assets
I made a research and found many ways this are which made sense too me.
Short term holding(1 year approximately ):
You have to pay on the whole current stock price 2,5% Zakat.
Example: You have 100 stocks and the share price is 100€ on the day you calculate and give your zakat. Then you have to pay on the 10.000€ 2,5% zakat. Which is 250€.
Long term:
First option;
You only have to pay on the current assets of the stock the zakat.
Example: 10.000€ worth on stocks.
The company has 60% of current assets. So the amount which is zakatable is 6000€. 2,5% on 6.000 is 150€.
Some people say. I also have to take the currents assets in ratio with the market cap. But i am not sure if I understood it right.
The second long term option: Also paying 2,5% on the whole amount of stocks. 10.000€ worth on stocks than 250€ zakat like the short term holding option.
However, the dividends have to be seen like cash and be paid zakat 2,5% regardless of the option u use.
How do you calculate your zakat? Which option is the best? Calculating 2,5% of the whole amount and being safe?
Edit: changed non current assets to current assets