Zakaat calculated on market value
Question
I have received a query with regards to Zakaat on business goods. When calculating the Zakaat on my stock, should I work out the Zakaat according to the cost price, or the selling price?
Answer
Zakaat is calculated on the market value of the goods and not the cost price. The market value is the price the goods sell for in the market which we generally refer to as the ‘selling price’.
References (Arabic / Urdu sources)
الزكاة واجبة في عروض التجارة كائنة ما كانت إذا بلغت قيمتها نصابا من الورق والذهب كذا في الهداية. ويقوم بالمضروبة كذا في التبيين وتعتبر القيمة عند حولان الحول بعد أن تكون قيمتها في ابتداء الحول مائتي درهم من الدراهم —- (الفتاوي الهندية ص 179 ج1)
- Answered by
- Mufti Mohammed Desai
Fatawa SA is an independent, read-only index of fatawa already published by Darul Ifta Ibn Masood. It is not a fatwa service. For your own situation, ask the issuing Darul Ifta directly.