Home » Hanafi Fiqh » Askimam.org » How to calculate zakat on shares when it is in losses? How to calculate Zakat on plot of land?

# How to calculate zakat on shares when it is in losses? How to calculate Zakat on plot of land?

Dear Imam Sahib as salam alay kum wa rahmat allai wa barkathu, I own 500 shares since 1995 that time I purchased @ 40 indian rupees each since that time it doesen’t reach that price now the current price (1st May 2001) is only 10 rupees I am incurring losses on these shares. How can I calculate Zakat on these shares. every year i.e., from 1996 to 2001. I have 3 pieces of land (plots) the first one where I am constructing my home this year inshaallah, the other 2 plots I purchased it as investment but not for reselling (for my children) I want to hold these for my children’s future need, should I have to pay zakat on it? thanks, Jazak Allah Khair.

Kindly refer our standard reply on queries on Zakaat on shares – below

There is no Zakaat on any one of the three pieces of land.

and Allah Ta’ala Knows Best

Mufti Ebrahim Desai
FATWA DEPT.

Q: If one owns 40% of shares in a company, then how is Zakaat calculated on
his share?
A: If the company is a trading investment then Zakaat is payable on the
capital amount as well as the dividends. If the company is not a trading
investment and only receives income, for example from rentals of properties
then Zakaat is liable only on the dividends.
In this case, as a shareholder of a trading investment, Zakaat is due at
2.5% of the 40% shareholding on the capital, as well as on the dividends.

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