Question
Please elaborate whether stock are zakatable? If yes, please tell the percentage to be applied if they are kept for capital appreciation? What would be the share value to be used for calculation i.e. cost or market value?
I have had shares for five years and never paid zakat on them, should I go back in time to calculate the cumulative amount to be paid on the same principle advised in responses to the questions above? If yes, what is the percentage to be applied?
Is a rental property zakatable? What value should be applied if there is no income left after paying the mandatory mortgage interest and other running expenses? Your guidance will be much appreciated.
Answer
Thank you for the email. We believe that the shares are included in the invested capital and are not zakatable. However, the dividend and other benefits they yield is subject to zakah. The dividends etc are to be zakated at the rate of ten percent, in the view of Mr Javed Ahmad Ghamidi.
As explained in question one above it is not zakatable. It is better to pay the zakat due. It would be easier to calculate as there are little dividends in four years.
Rental property is not zakatable.
Rent is zakatable regardless of the mortgage interest etc. Rent is to be paid at the rate of ten percent of the total.
Answered by: Tariq Mahmood Hashmi
Date: 2014-11-13
