Q. When calculating the zakatable amount of one’s holding of a share, what types of goods are to be included in the calulation?
الجواب حامدا ومصليا ومسلما ومنه الصدق والصواب
Zakah is payable on gold, silver, cash, cash receivables and trade stock. A share represents proportionate ownership in all the assets of a business, including cash, cash receivables, trade stock – whether raw material or finished goods, land, buildings, machinery and vehicles etc. However, not all of these are zakatable assets. It is only cash, cash receivables and trading stock that will typically be the portion of a share that is zakatable. The fixed assets will not be zakatable as they are not trade stock. However, if one purchases a share to resell then the entire value of the share will be zakatable as the entire share is now itself trade stock.