Darul Iftaa Mahmudiyyah

Do I have to pay Zakaat on the market value or investment value of shares?

· 27 Shaʻban 1433 AH1 min readFatwa 21476English

Question

Assalam Alaikum Mufti Saheb,

I had invested INR 3 lakhs in shares of some textile, steel, software and petroleum companies in India about 3 years ago. Now the value of those shares have depreciated more than 50%. Do I have to pay zakat on the investment value (ie.3 lakhs Indian rupees) or their current value?

Jazakallah.

Answer

In the Name of Allah, the Most Gracious, the Most Merciful.

As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.

Muhtaram,

JazakAllah. For your question.

One is obligated to pay Zakaat on the current value of the shares that one owns in a company and the dividends that accrued thereof.[1]

And Allah Ta’āla Knows Best

Moulana Ismail Desai,
Student Darul Iftaa
Durban, South Africa

Checked and Approved by,
Mufti Ebrahim Desai.

References (Arabic / Urdu sources)

او ما يساوي قيمته من عروض تجارة (نور الايضاح، ص 209، علمي ببليشرز)[1]

Answered by
Moulana Ismail Desai
Checked & approved by
Mufti Ebrahim Desai
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Source: Darul Iftaa Mahmudiyyah — https://askimam.org/public/question_detail/21476
Fatawa SA: https://fatawa.co.za/fatwa/askimam-21476

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