Is there Zakat for money given in an investment?
Published as Zakaat On Investments
Question
Is there Zakat for money given in an investment?
Answer
If a person invested funds in a trading business or goods of merchandise then Zakaat is payable at the market value of the goods on one’s Zakaat due-date. However, if one has invested in a building, or block of flats or a mall, etc. then Zakaat is only payable on the rental income derived from it, if all or part of the rental income is still available (i.e. not used up) when calculating one’s yearly Zakaat.
Similarly, if one has invested in a hiring business such as hiring out crockery or cars, etc. then too Zakaat will only be payable on the rental income accrued, if still available when calculating one’s yearly Zakaat. If some or all of the income has been spent before one’s stipulated Zakaat date, then such income will be exempted from Zakaat.
- Approved by
- Mufti Muhammed Saeed Motara Saheb D.B.
Where scholars differ, it’s safer to take the more cautious view.
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Source: Darul Ifta, Darul Uloom Azaadville — https://www.iftadua.co.za/zakaat-on-investments/9471/
Fatawa SA: https://fatawa.co.za/fatwa/azaadville-9471
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