AssalamuAlaikum, I am a businessman and pay zakaat at the beginning of Ramadhan. I total all cash, jewellery and debtors and subtract the creditors to get my zakatable income. With regards to the business stock, I have heard two opinions. Many have mentioned that you have to calculate it at the cost price. Many have also mentioned that it has to be calculated at market price. I will appreciate it if you can clarify this matter for me. I will appreciate a detail response including the hanafi school’s verdict and whether there is are differences of opinions. JazakAllah and awaiting your reply. Wasalaam
Answer
(Fatwa: 1538/1229/L=1430)
The Zakah will be paid as per the existent market value of the business stock, the original cost will not be considered.
Allah (Subhana Wa Ta’ala) knows Best
Darul Ifta,
Darul Uloom Deoband