Fatwa ID: 08401

Answered by: Maulana Sibghat Ullah

Question:

If someone purchased a property with the intention to immediately hold or rent out but then eventually sell it when the price is right, would that property be considered zakatable?

Similarly, with stocks, if someone purchased with the intention to immediately hold but then eventually sell when the price is right, are those stocks zakatable in their entirety?

بِسْمِ اللهِ الرَّحْمنِ الرَّحِيْم

In the name of Allah, the Most Gracious, the Most Merciful

Answer:

If an asset or stock that is purchased with the express intention to resell, it will be a zakatable asset according to market value regardless of when it is sold. So, if one lunar year passes, you must pay zakat on it. [i]

Hope this answers the question.

Only Allah knows best.

Written by Molana Sibghat Ullah

Checked and approved by Mufti Mohammed Tosir Miah

Darul Ifta Birmingham

[i] Radd ul Mukhtar, Vol. 3, Book of zakat, Page 103, Darul fikr

الزكاة تجب على مال التجارة، وإن لم يُبع، ويُقدر بثلثين القيمة عند وجوب الزكاة، على أن يكون المال تامًا في ملكه لمدة سنة هجرية

Zakat is obligatory on business wealth, even if the goods have not yet been sold, and it is calculated based on the market value on the day Zakat is due, provided that the wealth has been in the owner’s possession for a full lunar year.