Home » Hanafi Fiqh » Askimam.org » Zakat on Stocks and Reitrement savings.

Zakat on Stocks and Reitrement savings.

Answered as per Hanafi Fiqh by Askimam.org

(1)I bought shares of a high tech comp in the US stock exchange more than a yr ago.I have not sold the shares so far and hence the money is still invested.Do I need to pay zakat on this money?I am doubtful because this money is kind of being invested in a business.and I read somewhere that we do not need to pay zakat on money that is being used for business.Please clarify.(2)Also I have funds in the retirement savings plan.Half of it is deducted from my salary directly(I dont get that at all)and the other half by my employer.I will not get this money until 2040.do I need to pay zakat on this? Note that I dont have access to the funds now.If I did, I’d have drawn the money and used it.And consider the fact that I dont have much funds available at the moment to pay the zakat for this amount.

Answer

1. Zakaat will only be due upon the dividends earned from this investment.
2. If this money is deducted without your consent, you do not have to pay Zakaat on this amount presently.

and Allah Ta’ala Knows Best

Mufti Muhammad Kadwa
FATWA DEPT.

Original Source Link

This answer was collected from Askimam.org, which is operated under the supervision of Mufti Ebrahim Desai from South Africa.

Read answers with similar topics: