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When calculating Zakaat what value of company shares should be used? i.e. current value or purchase price as values do change drastically

Answered according to Hanafi Fiqh by Askimam.org

I have a number of shares in different companies. I want to give Zakaat but do not know what notional value to use in order to calculate the amount payable. For example, the market recently has been very volatile so if I use the price on diffrent days then the amount due would differ markedly. Please help.

Answer

1. If the company buys and sells merchandise, Zakaat will be calculated on
the capital investment as well as on the dividends. If the company does not
buy and sell but only leases out properties, Zakaat will only be calculated
on the dividends earned, not on the capital amount. (Fatawa Rahimiya vol 2
pg.14)
2. Zakaat should be calculated at the average market related value.

and Allah Ta’ala Knows Best

Mufti Ebrahim Desai
FATWA DEPT.

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