Simplified Zakat Guidance: Shares and Stocks | Dr. Mufti Abdur-Rahman ibn Yusuf 

Financial advice from someone who makes sense finally I have found someone who makes sense. May Allah reward you brother

Summary of video Short term trading: 2.5% Long term investment: 1%

MashAllah very helpful, you have simplified something we have struggled to get a clear answer for a long time. May Allah accept all our zakat.

Came here to learn about Zakat, leaving with a deeper understanding of fractions. LOL Jazak Allah Hu Khair

So much simplified. Jazakallah my beloved Sheikh.

Thank you so much!

Ma sha ALLah, one of the best and clear description to do the zakat calculation.

7:10 alternatively you can divide the total amount for long term investment by 100 to get 1 %

I was so worried on calculating the zakat on my equity and MF investments, finally got something easy to do that. Thanks a lot ❤

Thank you Sir.

Amazing, clearly explained. Thanks

Just what I was looking for many thanks for this!

Wow! Masha-Allah, I have been struggling with this for a long time and I have over paid for the last 15 years. You have really simplified it. Thank you so much!!!!!

Thanks for Clearing My Doubt. Helpful Content. 👌

JazakALLAH Sheikh! This is really really helpful! Thank you so much for this fatwa 🌹

Masha Allah you are doing good job

Jazak Allahu Khair

Mashallah made it very simple.

Mashallah very clear ya Sheik. JZK!

Mashallah, very helpful guide. Jajak Allah khair.

Jazakalla

Very useful information.. Alhamdulillah

Yes ,u r right short term stock trading is like gambling

Great understand....

Most helpful knowledge....

Alhamdulillah nice analysis

Shukriya

Assalamualeykum Mufti Saab, I am commenting to point out a possible error and please forgive me if I am making a mistake in doing so. In the last 15 to 20 seconds you take an example of £2650 and correctly state the 1% of 2650 is £26.50. You then go on to state that zakat should be pain on £26.50, rather than stating that £26.50 should be paid as zakat. Please forgive me if I have made a mistake in mentioning this.

Equitation made simple.. Pay just one percent of your investment for long term

Aoa mufti sb, please explain if we need to factor in current liabilities of a company as they will impact liquid assets

Many thanx. Can the same equation be applied on Mutual funds where mutual fund managers are doing investment for us and we dont know where they are investing our amount except that it is invested in Shariah Compliance bonds or certificates. We get dividend one yearly basis but it is calculated on daily basis.

I have been told that you pay Zakat on stock that you liquated i.e. sold and made a profit during the year. Stock can go up or down, at the end you might not even have any money for Zakat. A furniture company that I had shares in went bankrupt and shares were worthless after 3 years of holding (there were no dividends), imagine if I paid zakat on the value of share holding each year.

Sir ....how do we calculate the zakat on Unit Trusts with Dividend reinvested?

Thank you Sheikh for simplifying the whole process. I would like to get one clarification which is related to the trade/selling fee that one has to pay when selling the stock. Should I deduct those amounts from the total value of the stock and then take 1% of the remaining amount of the stocks? Lets say total value of the stock is 10,000 and the trade/selling commission fee is 10 then should we subtract that first ( 10,000 - 10= 9,990, now multiply 1% to it which will give us 99.9 ) is this calculation correct? Please can you provide some clarification.

Can you please post a video about stock mark trading including futures and options... islamic view and rules

I have a few shares in a few different publicly listed UCITS mutual funds that I intend to hold for the long term and use it as a rainy day cover. The niyyah is not to sell these anytime in the near future and infact keep adding to it as and when I can. Could you please advise if I can use the [2.5% of 40% proxy rule] or should I use the [2.5% of total portfolio] for determining my zakat. I would really appreciate if you could please respond.

what about checking the actual stock - whether it is a halal stock

How much should you pay in recession When your portfolio is only in growth stock They tend to move faster with market condition So if your portfolio is minus 66% how much you have to pay

Sir some ulema speak total stocks of amount 1/4 value's zakaat will apply in long term. Please help me

Is 1% from invested amount or from the current value

So here , no need to consider that the fund is with us for 1 complete year ?

Assalamualikum, thanks for explaining. I usually invest in share for growth not as day trader selling term holding. So I have invested in many companies one of them increased 10 times in last 10 months. I.e. investment if £3k is now £30k ! How would I pay zakat on that is it £3k original value or £30k current value or on £12k (30 x 40%). Mind you the value does fluctuate so I thought average value of 12 month of the stock holding would be an ideal approach. Please advise ?

£1000 - how do you arrive at? The value of stock keeps changing every day. Is it the value of the share on the day of your Nisaab?

What about that we buy stock for long term and don't want to sell.. Stock only buy for devident income how much have to pay on that

assalamu alaykum!!I just want to ask if I have to pay zakat business on goods,do I have to calculate the net income or shall I say my profit for that day or I have to calculate it together with my capital?I really need to understand the ruling of this because I don't want to make mistakes and cheat!and what if my business is in depth and just tryin to circulate my business to pay off my depth first and don't have any savings on my bank?

Calulate zakat for shares investment price or current holding price ( in long term price goes up and down ) how can calulate it plz reply

How about bank FD?

Salaam alaikum Sheikh jazaakallahu Khairan ..... Is it 25% of the total value of the stock you are holding as zakaat or 40% as you say..... I am confused

Urgent! For long term, should I consider the actual price i paid to purchase the shares or the selling price that means the price i will get if I sell now? This is urgent ...pls respond fast mufti sab

I hv invested 1.5 lac for long term . But I don't even get 1 per cent profit annually. Wat shall I do in such case ?? How much zakaath do I need to gv ??? On stocks or annual profit ??? Please reply !!!

I am a widow mother of two kids of 4yrs.my husband left some money i invested in mutual fund for kids future education.do i have to pay zakaat on it and should be calculated in profit i get from it or the whole amount

why always you put dividens as the opposite of daytrading. doesnt count this 1% rule on stocks which u own for long term too but doesnt pay dividends?

Will there be a session for zakat on pensions?

How person will pay zakat if he is fully invested ? If we sell or buy stock we are already paying taxes also dividend paid is after deducting tax

Salaam, How we can calculate Asset in Halal Mutual Fund Investment , Jazakallah Khair

JazakAllah