Zakaat On Shares Of A Company.
 Bismihi Ta`ala

*ZAKAAT ON SHARES OF A COMPANY.* 

*QUESTION) I would like some information about Zakaat on shares of a company. My mom inherited some shares when she got married. Today’s value of all the shares are about 3 million rupees but the dividend received in a year is very less than Rs 100 000. She uses the dividend for her personal use mostly on medicine & some clothes as dad can’t afford for her expenses. She removes Zakaat only on her money at Bank and on the money received as dividends. She has never removed Zakaat on the shares since around 25 years, always on her money in the bank which is today around Rs 200 000. Does she have to remove Zakaat on the value of the shares too? Does she have to remove 2.5 % on Rs 3 million = Rs 75 000? If yes and if she removes Rs 75 000 each year, nothing will be left in her money (Bank Balance). Then after that, what does she do? Sell the shares to pay Zakaat? What to do now?*
 
 
*ANSWER) The science of acquitting Zakaat is based on those assets that is fluidly growing. That is why there would be no Zakaat taxable on land, building, machinery,etc. Whereas stock, cash, good debts, jewellery and so on are all zakaat taxable items.*
*So same principle will apply in the calculation of shares` Zakaat. The taxable items of the company should minus creditors and loans as at that date.* *This principle applies to an individual as well as collective ownership like companies. Now the shares of your mother represent a specific percentage of ownership in that particular company.* *In calculation of zakaat, one has to read the last balance sheet of the company and earmark the zakaat taxable items. Practically we are looking at current assets of the company: Cash, Bank, Stock, Debtors, etc. We should add all of them. Then the current liabilities mentioned would be subtracted from the current Assets. Technically, we are looking for the NET CURRENT ASSETS available as at that date. The sum of Net Current Assets(Current assets minus current liabilities) is the Zakaat taxable amount for the whole company. So to calculate the zakaat of your mother, take the amount of shares that your mother own in that particular company and divide it by the total amount of shareholders that is listed in the company. The fraction left is the ownership ratio of your mother in that particular company. Take the ratio and multiply it with the Net Current Assets calculated above and you would have the taxable amount for Zakaat. Now the Zakaat would be only 2.5% of that amount per lunar annum. You have noted that there is no Zakaat on the dividend unless the money is banked and found in the closing balance as at year ending or Zakaat date. An approximate calculation of Zakaat for the last 25 years may be rounded up and slowly she may acquit the Zakaat due. Important to know that only volatile ordinary shares dividend are halaal compliant. Fixed preference or ordinary, debentures, bonds and bills are all non shariat compliant. It is because they have a minimum amount of return dividend each year. Only volatile ordinary shares have no fixed returns.* *According to shariah any investment made to yield profit should comply to have a non guaranteed profit yield and also should comply to entertain lost also.*
*A guaranteed yield is not profit but interest and is haraam. Yes, in a general term business, one should fix percentage of net profit or gross profit. Hence the amount of profit will vary as per business activity.*
*Feel free to ask question. Because the beloved prophet Swalallahou `Alaihi Wasallam said that ‘’Why didn`t they ask others if they didn`t know. Know that verily, the formula to dispel ignorance is to simply ask a question(to the knowledgeable).’’(Abu Dawood)*
*Know that your Zakaat date is the lunar date that you had nisaab first time after puberty. That lunar date on the following year, you would assess your assets value and minus your debts and creditors as at that date.* 
*But if you don’t know your exact Zakaat date, then choose a date during Ramadhaan ideally, the 1st Ramadhaan. So as at 1st Ramadhaan, how much money in bank, cash, stock, debtors, value of jewelry summed up minus debts will be your Zakaat calculation amount. Take 2.5% and multiply by this amount is the exact Zakaat due for that year. If you have Net current liabilities or your debts exceed your assets, then there is no Zakaat due on you.*
*So in your mother’s case, she will calculate 2.5 % of her capital ratio of the Net Current Assets of the company as at her Zakaat date or 1st Ramadhaan and then add this amount to her has money/dividends credited, jewelries etc as at 1st Ramadhaan, then substract her liabilities or debts if any as at that date exactly.**Zakaat is liable on a person personally. So the person has to manage to pay this due personally even if he has to take debt from someone.* *But if during Ramadhaan she has no cash, she may acquit the Zakaat calculated during Ramadhaan that is due on her, give the amount later during the year particularly when dividends are received.* *But a rich son or a rich father can acquit the Zakaat of his subordinates/parents after informing them..*

Mufti Mackoojee
@MuftiMackoojee
+23057921333
Islam-qna.org
 
 
     
 
 
 
 
Other Articles:
Hajj Guide 2016
The maslas around the departures of hajees
Another umrah from Tan'eem.1440/2019
Muslims leaders are supporting cultural genocide of Uighur nation.
*Music is satinic and haraam*
The key of Ikhlass.
Democracy or Modern Colonialism?
Have you stocked for this Ramadhaan?
Around Taraweeh: 8 Or 20?
Isaale Sawaab do reach the deceased muslim.
Smoke And Smoking.
Glad tidings awaiting muslims.
Martyr Hafiz Muhammad Morsi Rahmatullah Alaihi.
Hanafis do isaale sawaab and not salaah in absentia.
Boycott China for its enslavement policy on Uyghur Muslims.
Is Iran an American Ally?
Madinah Ziyaarats*
OPERATION : Turn off the lights.
Those who dared And Those who cared.
Aaram se raho. Gunah se bacho.
The Sunnah Diet.
Masnoon Duas Of Ramadhaan.
Husnat tadbeer-The wisdom of well planification.
Terrorism against muslims.
Mind Your Language!
The moderate ummah:Give priority to Humans.Part 8
Jamaat is fisabilillah.
The moderate ummah-part 6.
The foot steps of Prophets around Mi;raj,
Permissiblity of sharing Qur-aan Juzs on whatsapp group-2019/1440.
The permissibility of distributing part of Qur-aan or any hizb amongst voluntaries or whatsapp group,provided read individually.
The moderate ummah-part 5.
The moderate ummah-part 4.
The moderate ummah-part 3
The moderate ummah-part 2
The moderate ummah-part 1.
*Main Personalities that matters, Not place.*
The moderate ummah:Priority to Humans.Part 7.
Fi Sabilillah encompasses going in jamaat also.
Be careful of modern satanic voices.
The cause of downfall.
*Muslims cannot celebrate St Valentine*
*Permissibility of reading Qur-aan in graveyards/qabrastaan*
The Tawakkul Accompanied With Precautions.
*The halaal Research Committee*
The Inhuman Sadistical Trend.
A day more to perfect my Imaan.
The Fiqh of Muslim Naming.
The gravity of one single crime.
Rampant pitiless crimes.
The Evolution of Man and Woman.
Painful demise of imaam hafiz Anwar Mohammad khatib r.a
Around the month of Muharram.
*The permissibility of stunning before zabah.
Did you dream anything last night?
*Jamaal-Beauty*
On returning from Mina, important sunnah to stop for a while in Abtah(Muhassab)
*Grateful actions to thank on bounties of Allah Ta'ala.
The month of Shawaal and Hazrat Aisha R.a
Shellac E 904 is halaal safe.
*Sadaqatul Fitr Best Given With Money Equivalence*
The Maslas Around Suicide.
Days and Nights of the beloved prophet sawlallahou alaihi wasallam.
*Historic Initiative Against Riba-Interest*
The Respect Of The Masjid.
Should a traveller fast on 31st fast?
The Sunnah Of Neutral Approach.
The minimum dose of Qur-aan Hizb.
*The Danger Of Astronomical Calendar Distortion.*
*The Ultimate Treasure- Laylatul Qadr-27th*
Amidst the symbols of Allah Taa'la
When to fast for Arafah?
The danger of astronomical calendar distortion.
*Duas Around The Departure And Arrivals Of Hajis*
*The Ultimate Aims Of Ramadhaan*
*Comparison Between I'tikaaf/Jamaat.*
The Ultimate Quest For Lailatul Qadr 1438.
Kindness In Business Dealings.
The virtues of going in the path of Allah over ibaadahs.
*Clear Proofs Why Our Children Should Fast*
Miscellaneous Maslas Of Ramadhan.
*Have You Vested In Sadaqah-Surance Today?
A few steps with Hazrat Mufti Afzal Hossen ilyas R.A.
*The Complete Tableau Of Sunnah*
The Fine Tuning Taraweeh And Witr.
Salaat-ul-Witr.
Nobleness
What is meant by zakaat?
QAZA Of Salaah And Roza:
Importance Of Taraweeh During Ramadhan.
What is meant by fasting?
The Gift Of Mi'raaj(Part 2)
The Distinctive Priorties Of Ramadhan: Fasting,Zakaat,Salaah,And Quraan.
Recommended To Pray Fajr Jamaat Earlier During Ramadhan.
*Around The 15th Shabaan*
Precaution Of Exactness Of New Moon Of Sha'baan For The Sake Of Ramadhaan.
The Sunnah Of Visiting Palestine And Gifts Of Mi'raj Unpacked.
The Gifts Of Mi'raaj(Part 1)
An expression of deep concern about the change in the moon sighting pattern in Saudia Arabia.
The Betrayal Masquarade Of The West.
The Havocking Results Of Under-Valuing Potentials.
The ''Mot D'ordre'' Of Today's Tabligh Is Tolerance.
Jamaat Structural Reform Proposal.
The Answer To Islamophobia Is The Gentle Sunnah.
The CopyRight Haq.
The Saviour Means Of The Ummah.
Know That The Masjid Is For Allah Only.
The Sunnah Of Leaving The Family To Benefit Deen.
ISLAM: The Peaceful Religion.
The Neutral Approach.
Some Words Of Bhai Abdul Wahab Saheb Damat Barakatuhu.
Are You Travelling First Class Today?
Neither Rome Nor The Ganges,Makkah Is Best(2nd part)
Interreligious Exchange And Approaching.
The Feet Posture Of Men In Salaah.
Protection Contre L'Eclair(La Foudre) Et L'Orage(Le Tonnerre)
And That SUNNNAH To opt For Akhirah Over THe Rule Of Dunya?
The Importance Of Dripping 2 Drops After A Wash
Follow The Icon Of Reconciliation: Hazrat Hassan R.A
Which Team Are You Supporting?
From Either Wing, Respect is Important.
Neither Rome Nor The Ganges,Makkah Is Best(1st part)
Established Protocols
Infallible Protection Formulas
SAJDAH SHUKR-Needs Qiblah And Wouzu
Istighfaar And Sadaqahs As punishment Of Allah Gazes us.
The Moon And The Beloved Prophet Muhammad(Swalallahou 'Alaihi Wasallam)
POSSIBLE MOON ECLIPSE THIS WEDNESDAY 31ST JANUARY 2018
One of the last words of RASOULOULLAH SAW
An Effort,A Pinnacle,A Purification And A Legacy
Your Actions Weight For The Ummah Please
Monday:The Day Of The Prophet-YAUM UN NABI
The Month Of Safar And The Denial Of Bad Omens.
The Important Of Visiting The Masjidul Aqsa And Also The Sunnah Of Wearing Ihraam Of Umra From There.
For those celebrating eid ul adha Saturday, can fast friday alone.
*Nights That Made Colourful Days*
1440 hijri calendar starting soon.
Proof that Pardah and veil is a natural attire of muslim Women.
Moses V/S Pharaoh
10 days of Zul Hijjah, virtuous yes, but not above Ramadhaan.
A miqaat that pays
The rites of qurbani
Help to those who have been affected by the flood in India
Fasting of arafah is the 9th zul hijjah in your country, not the day hajis are in arafah.
Farsighted Principles.
What is the Islamic verdict of consuming intestines of halaal animals?
Flaw around foreign qurbani
Extract of Sharhe Ma'aniyul Athaar,
*Is it permissible to purchase a share of the Qurbani for a deceased relative?
Neither rodeo nor extreme protectionism, islam best.
Visiting a sick who is dying
Miscellaneous hajj maslas
On returning from Mina, important sunnah to stop for a while in Abtah(Muhassab).
Please send salaam for me to Rasouloullah(saw)
Age required for the slaughtering animal
Sadaqah hajj 1439- 10 riyals.The struggle of a hajj!
Jum'ah second azaan should be given in front of mimbar
Duas around the departure and arrival of Hajis
Traveller's diary-Pg 6 Ladies&Gents maslas
Precaution of exactness of new moon
Intolerance Is Splitting Us.
Can we fast on the 15th of Shabaan only?
Recommendations of the day of Jum'ah
The sacred month of Rajab announce the coming of Ramadhan
Demise Of Ml Abdullah kapodra.
A few travelling tips
Salaatul Ishraaq
Masnoon duas after farz salah
Muslims cannot celebrate St Valentine
A bitter sign of Qiyamah: Imran Hosein
Ikhtilaat and mixing on the day of jumu'ah.
Astaghfirullah 3 times after Farz Salaahs rather than Allahou Akbar
There is no zakaat on a non baligh child.
3 Talaaqs count as 3 talaaqs .
You may help Palestine by your visit in MASJIDULLAH l AQSA
The E 120 carmine colour.
The Sunnahs around the day of ASHOURA(10th of Muharram)1440
The sunnahs around Eid-ul-Adhaa 1437.
Talaaq counts even during menses.
Animal de sacrifice atteint de la maladie.
Hajj cards
Can a muslim drink alcohol?
Loan
One sheep is not sufficient for qurbani ..
The First Ten Days Of The Month Of Zil Hijjah.
Amidst the symbols of Allah Ta'ala
The first ten days of the month of Zil Hijjah
The eclipse salaah-May be Today
Prior to hajj preparations.
The importance of visiting the Prophet swalallahou `alaihi wasallam
Sadaqah hajj 1440-10 riyals.The struggle of a hajj.
Even hujjaaj should beware of E120 or carmine
HALAAL FOOD AND ZIYARATS INFO UPDATED HAJJ 1439
The fruitful Maslas of Hajj 1440
Zul Qa'dah: Entering the sacred months span
Steps of the Mubarak path road of Hajj
Are you sure that hajj is not farz on you?
Who is Fetullah Gulen?
L'hiver: Le printemps du Musulman
Le Hajj en perspective
Wearing Ihraam at Masjid Aqsa - Jerusalem
The Sunnah Settings
Let us surf on the wave of Ramadhan to continue reading daily salaahs
The major signs before the day of Qiyamah
The saviour means of this Ummah
Have you milked the cow this morning?
The crying is important in the ingredients!
The virtues of going in the path of Allah
Travelling during Ramadhan
The Importance of a daily Hizb
The symbolic sunnah of dates
Women in menses cannot read Qur'an
Miscelleneous maslas of Ramadhan 1437
Importance of fasting Ramadhan
The fiqh of Muslim naming
Conservative v/s Entrepreneurship.
What is the islamic verdict of consuming intestines of halaal animals?
Please send Salaam for me to Rasoolullah (saw)
The Qur'an and Sunnah are sufficient for us
The deffence of the Ummah
Salaat-ut-Tasbeeh is proven by Ahadiths
The salah and itikaaf of ladies
Sha'baan: the annual closing of our action accounts
Notes for Umrah and Hajj
Importance of Madrassah
Le sunnah de visiter la Palestine
An insight on 15th Sha`baan 1437
The sacred month of Rajab
The moon and the beloved Prophet Muhammad (saw)
The Masnoon Dua Formula
Allah: Le défenseur des faibles
Traveller's diary
*If Eid ul Fitr happens to be a friday,then there is definitely Jum'ah also*
Warning against those who leave jum'ah without valid excuse
Reviving the sunnah of Hijamah (cupping)
Du'a lorsque la pluie tombe
L`ultime importance du Jum`ah
Husne Khatimah - A graceful pious ending
The why of the chaotic conditions of the Ummah
The great importance of Jum'ah salah (for men)
L`aimable Bye Golah
The halal moderation
Et si la mer était d`encre..
No blame on Hajj authorities
A call to go in the path of Allah as the earth squeezes
The answer to islamophobia is the gentle sunnah
The importance of Hijri calendar
La paix de l`Islam
A call for concern and unity of the Ummah
Fasting on 9th Zil Hijjah
The sunnahs around Eid ul Adhaa 1439
Each country follows its sun and moon please.
The Fiqh of jewelleries 1437
The adaab of visiting the beloved Prophet(saw)
L`issue de la transplantation d`organe
Les rites du Hajj et la visite a Madinah Munawarah
The quest for Halal and Tayyib
Notes for the host of Harams, Hajees & Mu'tamirs
O my Nabi (saw), I am not charlie
The sharing out of inheritance according to Islam
THE HEIRS (inheritors)
Five things given to our Ummah
The tsunami issue of mechanical slaughtering
Conseils aux Hajees et non Hajees
Les barakahs d`avoir beaucoup d`enfants
BEWARE of E 120 or Carmine.
Du`as at tahajjud
Le `Eid et l`après Eid
The sunnahs around Eid-ul-Fitr 1440
Salaahs of ladies are at home.
The Sunnah of 'Oud Wood
The Zakaat ul Fitr or Sadaqat ul Fitr Ramadhan 1440
The lunar dates issue
The best Ibaadahs during lailatul qadr
The sunnah of dates
The moderation of asking and giving.
Knock! Knock! A beggar at the door!
Cry! Let's cry in front of our Rabb!
Victoire avec noblesse
Clear proofs why our children should fast..
Make the change this Ramadhan
Fasting for adults
Set a hizb time today
Importance of Taraweeh during Ramadhaan
Conseils d`avant Ramadhaan.
All on 15th Sha`baan
L`Istighfaar pour sauver le monde!
L`utilisation du bois de Oud selon le sunnah.
Les signes du Jugement selon le Coran
La gravité du suicide.
L’interdiction des jeux de hasard.
The necessity of a reply
La prescription pour la conjonctivite
L`unité dans la diversité.
En honneur du saint prophète Muhammad(SAW)
La malédiction de l`homosexualité.
Avance ta main de la barbe du prophète SAW!
La liberté d`expression n`est pas pour faire des insultes.
Utilisation optimum des ressources mondiales
Tie the ihram of your Umrah in Masjid ul Aqsa (in Jerusalem)
La nécessité d`un Umrah.
Le Qurbani : un symbole de l`Islam
Mosques: their importance & the respect due to them
L`Islam n`est pas intolérant
Les préparatifs du Hajj
Les rites du Hajj 1437
La protection contre la croisade du siècle
Conseils d`avant le mois du Ramadhaan
L`émmigration des palestiniens
La sacrée `Eid-ul-Fitr.
Le dattier et la datte
Défendons-nous par les actions
Les poisons de l`amour
La préparation du mois de Ramadhaan
La protection contre la sorcellerie
Le dosage d`amour dans le couple
Le respect de la Ka`bah.
L`Intimité entre couple
L`amour entre couple.
Le prophète Muhammad (saw): Une bénédiction pour l`univers
L`Islam et la chasteté
Les compagnons du prophète SAW
Les droits des enfants et de la famille
L`Islam : la religion de la démocratie
L`année du Coran et non pas de Gregor
Les potentiels humains
Mandela, an Islamophile
The spiritual nature of Ziyarat
La croyance dans le destin
Vacances saines pour nos jeunes.
The flower of friendship
When in doubt, don't !
Eviter le bain de sang
L`arrosoir des bons conseils
The equilibrial sense of I'tikaaf
Le physique du prophète Muhammad (SAW).
Consolation aux victimes d`Islamophobie.
Ramadan: Le mois du Coran
La clarté de la lune.
La modération du Sunnah.
Le couleur d`Allah Ta`ala
Les prudences et les remèdes du Coran et du Sunnah
Les rites funéraires d`un musulman.
Les conditions du tirage au sort selon la shariat
Les résultats inondés de l`insoumission
Les rites islamiques lors d'une naissance
Umrah 2016
L`homme le plus affluant de l`humanité
Comment distribuer mon heritage d'apres Islam
La corrélation du jour, de la nuit et des calendriers.
L'azaan: Symbole integrant de l'Islam
Les signes du jour du jugement.
L`esprit du Hajj et la visite a Madinah
Enfin est arrivé Ramadan
Les sacrifices honorés
Les pas de Hazrat Bilal (ra)
La recette du bonheur selon l'Islam
Les règles de la menstruation.
Les réalités des rêves
L’Islam intégrant ou conservateur ?
L’avortement de par la loi d’exception
L’incontournable justice divine
Let's fast on Mondays for Yaum un Nabi (saw)
Les jolis noms musulmans.
Les préférés du prophète Muhammad (pssl)
The inheritance scenario (part 2)
La médecine du prophet Muhammad (pssl)
L`importance de la priere du Vendredi : Le Jum`ah
The status of tahiyyatul masjid
Les Solstices des calendriers
Les maux des jeunes et leurs remedes islamiques
Superstition : pas de place en Islam.
For Allah’s sake, do not pronounce Talaaq
Quelques conseils halaal
Autour du monde halaal
The sun, the moon and the calenders
Vit en ce monde comme un voyageur
Le mois sacré d`Allah Ta`ala: Muharram
Les jeunes du mois sacré d`Allah Ta`ala: Muharram
The leather and gelatin industries
Sir A.R.Mohamed: My community first and foremost!
L`issue de la gelatine
The blessings of our small island
The ten sacred days of Zil Hijjah
The victory of islamic democracy
Eid ul Adhaa Mubarak !
Nations united in a crussade
The gifts of Mi`raj
Abortion is a cruel act
A religious, legal and medical analysis of the sexual offences bill.
Some Reasons to believe
The calculation of centuries as deciphered from the Qur’an
The beauty and splendour of Islam
The Citadel of Masnoon Du’as
The sharing out of inheritance according to Islam
Islam does not encourage wastage
The direction of Qiblah: The Kabah
The dog in perspective
The ultimate quest for Lailat-ul-Qadr 1437
The symbol of the Hijri calender
Interfaith Cohesion
The Beverages of Prophet Muhammad (saw)
The purpose of life
Islam favors capital punishment
The mirage of games of chance
The components of love and those of hate
The pollution of insubordination
Islamic rites at birth
Disclaimer Notice
The fields of activity of man and woman
Qurbani overseas
The importance of Jum'ah
Visit to Madinah Munawwarah
The rites of Qurbani
Making Mauritius a halal country
Islam, woman and make-up
The Month of Shawwal and Hazrat Aisha (ra)
Concerning the Solar Water Heater
Religion and Development
An-Nikkah, the Muslim Marriage Contract
Salaah at its prescribed times
Importance of being a believer
The Harmful Effects Of Food Of Doubtful Origin
Article on halal nutrition
Amateurism v/s Professionalism
The Fasting of Ramadhaan
The inheritance scenario
Democracy between veiled and non-veiled women
Masnoon Duas
Conjugal Harmony
Women Section
The month of Shabaan and getting ready for the month of Ramadhaan
 
  Website Designed by HDM Interactive Ltd.