Zakaat on shares

Q: When one has excess funds he/she tends to buy a property with the intention of getting rental income for one’s needs. As I learn there is no Zakat on the property as such but Zakat needs to be paid on the income derived from the property/properties. On the same Principle I have bought shares in Shariah compliant companies with the intention of deriving income from dividend sources. However I do not indulge in trading or speculative activities in the Stock Market. I do every year set aside Zakat from the dividends received and also as and when I happen to sell the shares I once again remove Zakat from the entire also proceeds. But I am told that irrespective of the Intent [Niyah] one needs to remove Zakat from the total share holdings based on market rate every year. Since I do not have sufficient income from other sources to cover the Zakat obligations, if I have to follow this policy I have no option but to sell part of my shares every year to fulfil my Zakat obligations. If this process continues indefinitely a day will come when my entire share holdings [my capital itself] might get wiped out. In this situation what should I do. Please Advise.


A: Refer to

And Allah Ta’ala (الله تعالى) knows best.


Answered by:

Mufti Zakaria Makada

Checked & Approved:

Mufti Ebrahim Salejee (Isipingo Beach)