Zakat

[hoang25mai]

Assalamualaikum. I’m a uni student with some investments. Wanted to clarify some things regarding zakat. So do I have to pay 2.5% of my investments or 2.5% of all my savings and investments? I do not work so all my savings and investments come from my parents. I understand there’s a seperate zakat for gold, if so how do I pay if it’s a gold etf?

 

[psalms91lady]

@hoang25mai Alkim al salam bro, take a snapshot of all money you have at the time of nisab and exclude any debt or upcoming payment, and pay 2.5% of the total amount, there are some exceptions like if u have agricultural land and it produces x amount of crops you don't pay 2.5% of the value of land, u only pay 10% of revenue every year the same goes to if u have a property/car/land and rent it u only pay 10% on revenue

 

[hoang25mai]

@psalms91lady What if I have sold majority of my stocks few months ago and currently only having gold etf and the rest in usd? So do I pay 2.5% of the etf value or 2.5% of my whole account or 2.5% of the gold etf and the profits from my previous selling of stocks?

 

[psalms91lady]

@hoang25mai Of all bro usd, etf and stocks

 

[saram]

@hoang25mai Separate calculations for stocks as they're not all zakatable assets. Usually you pay 2.5% on 25% of the value.

 

[cinemike]

@saram Im wondering where this is coming from my friend said the same thing but I’ve been told you have to pay 2.5% on current market value of your total stocks. What’s your daleel for the 25% value as this seems to go against majority consensus.

 

[saram]

@cinemike The consensus is actually paying that much on 25-30% on the value of stocks. It comes from the fact you pay Zakat on zakatable assets and not everything on the balance sheet the company has is zakatable. The percentage has been made by scholars/people involved in Islamic finance as a good approximation

 

[loxjox]

@saram Can you provide source please? as in which scholar gave this ruling?

 

[saram]

@loxjox I can try, but I'm busy with work right now . you can try googling it as well with the question of Zakat on stocks.

 

[cinemike]

@saram https://bonyan.ngo/zakat/how-to-calculate-zakat-on-stcoks-and-shares/ I guess it depends on if you are holding long term or not and this link is a good breakdown!

 

[saram]

@cinemike Yep it does. I presumed OP meant long term holding since it said 'investments'