Q: Upon which wealth does a person have to pay zakaat?
From Ihyaaud Deen. This entry is part 3 of 37 in the series Zakaat Masaail
A:Zakaat will be paid on the following:
1. Cash (including the balance of your bank deposits).
2. The market value of the merchandise contained in the share of the company i.e. one will be obligated to discharge the Zakaat of the company’s Zakaatable assets (merchandise) contained in the share excluding the non-Zakaatable items e.g. fixtures and fittings, transport vehicles, etc. which are not part of the merchandise of the company. The value of all these things will be evaluated in the share and will not be taken in account when discharging the zakaat. If it is difficult to differentiate between the zakaatable and non-Zakaatable assets of the company, then as a precautionary measure one should discharge the Zakaat on the market value of the entire share.
3. Face value of the financial papers like bonds loaned to the government, etc. It should be noted that when the loan is paid back by the government, it will only be permissible for one to retrieve the original amount of the loan given. The interest amount paid out by the government will be impermissible. It will have to be given in sadaqah without the intention of receiving reward. Similarly, it should be known that it is impermissible for a believer to deal in any form of interest (usury) whether it be receiving or giving an interest bearing loan.
4. The market rate of the balance of stock in trade (including raw material).
5. Receivable amounts i.e. debts owed to a person, monies loaned to people, etc.
6. Foreign currencies.
7. Gold and silver.