Pay zakah on invested amount.
Mu' meneen Brothers and Sisters,
As Salaam Aleikum wa Rahmatullahi wa Barakatuh.
(May Allah's Peace, Mercy and Blessings be upon all of you)
One of our brothers/sisters has asked
this question:
ASSALAMUALAIKUM
I HAVE INVESTED SOME AMOUNT IN A CONSTRUCTION COMPANY.
PLEASE ADVISE IF I AM SUPPOSED TO PAY ZAKAT ON THIS INVESTMENT. PLEASE NOTE
THAT LATER ON I HAD TO BORROW AN EQUIVALENT AMOUNT FROM MY RELATIVES DUE TO MY
NECESSITIES SINCE I CANNOT WITHDRAW THE INVESTTED AMOUNT IN BETWEEN.
AWAITING YOUR URGENT REPLY.
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Answer:
Pay zakah on invested
amount
In the name of Allah, We praise Him, seek His
help and ask for His forgiveness. Whoever Allah guides none can misguide,
and whoever He allows to fall astray, none can guide them aright. We bear
witness that there is none worthy of worship but Allah Alone, and we bear
witness that Muhammad (saws) is His slave-servant and the seal of His
Messengers.
If the total net worth of any believer (man, woman, or
child) is more than the prescribed ‘nisaab’ of 7.5 ‘tolas’ of gold (app. 85
grams or app. Value US$2,100.00), then the person is liable to pay the
obligatory annual ‘zakah’ of 2.5% on their excess wealth which has been in
their possession for a full calendar year.
If the total net worth of any believer is less than the
prescribed ‘nisaab’, he/she is not liable to pay any ‘zakah’ until their net
worth exceeds the prescribed ‘nisaab’.
For the purpose of determining ‘zakah’, the ‘Net Excess
Assets’ would be the current market value of all of one’s assets (properties,
investments, jewelry, cash, etc.) except:
- the
value of the house one owns and actually lives in
- the
value of the car/vehicle one uses on a regular basis
- the
value of the furniture and fixtures one uses on a regular basis.
Your Question: I HAVE INVESTED SOME AMOUNT IN A CONSTRUCTION
COMPANY. PLEASE ADVISE IF I AM SUPPOSED TO PAY ZAKAT ON THIS INVESTMENT
If you have invested a certain
amount in a business, that amount will be considered amongst your excess
assets, and provided that amount has been in your possession for one full lunar
calendar year, indeed you would be liable to pay 2.50% of the market value of
your investment as ‘zakah’ for the year.
Your Question: ….PLEASE NOTE THAT LATER ON I HAD TO BORROW
AN EQUIVALENT AMOUNT FROM MY RELATIVES DUE TO MY NECESSITIES SINCE I CANNOT
WITHDRAW THE INVESTTED AMOUNT IN BETWEEN.
The amount that you subsequently borrowed will not effect
the eligibility of your paying the zakah on your excess assets…..the amount
that you borrowed inherently belongs to the person who lent you the funds, and
it is they who would be liable to pay the zakah for their funds.
Whatever written of Truth and benefit is only
due to Allah’s Assistance and Guidance, and whatever of error is of me
alone. Allah Alone Knows Best and He is
the Only Source of Strength.
Your brother and
well wisher in Islam,
Burhan
Wister