The Practising Muslim · Fiqh of Zakah

Zakah Obligations and Asset Management

Tested on zakah obligations for various assets and wealth management scenarios.

9 questions · Medium · about 4 minutes

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9 questions, about 4 minutes.

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1. Is zakah due on tools and machinery kept for use in work, such as a carpenter’s or blacksmith’s tools?

  • No, zakah is not due on tools kept for use and not for sale. (correct answer)
  • Yes, zakah is due on their full value every year.
  • Yes, because anything used to earn profit is zakatable.
  • No zakah is due on the profits earned from using them.

Why

Tools, machinery, buildings, and vehicles used for work are not zakatable if they are kept for use and not prepared for sale. Zakah is due on wealth earned from them, such as profits or rental income, if it reaches the nisab and one Hijri year passes.

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2. What is the nisab for zakah on camels?

  • Five camels. (correct answer)
  • Thirty camels.
  • Forty camels.
  • One hundred and twenty camels.

Why

The nisab is the minimum amount at which zakah becomes due. For camels, the nisab is five. Someone who owns four camels or fewer does not have to pay zakah on them unless they choose to give voluntarily.

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3. What is the nisab for silver?

  • 595 grams of pure silver. (correct answer)
  • 85 grams of pure silver.
  • 200 grams of pure silver.
  • 354 grams of pure silver.

Why

The nisab for silver is 200 dirhams, which is equal to 595 grams of pure silver. Modern cash may be compared to the nisab of gold or silver, and the source notes that using the silver nisab is more cautious for the poor. The zakah rate is 2.5%.

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4. What is the nisab for gold?

  • 85 grams of pure gold. (correct answer)
  • 595 grams of pure gold.
  • 200 grams of pure gold.
  • 40 grams of pure gold.

Why

The nisab is the minimum amount of wealth at which zakah becomes obligatory. For gold, the nisab is 85 grams of pure gold, and for silver it is 595 grams. Modern currency is compared to whichever of the two nisabs is more beneficial for the poor.

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5. How should a manufacturing and trading company calculate zakah at the end of the zakah year?

  • Add stock bought for sale, cash, and expected receivables, then pay 2.5%. (correct answer)
  • Pay zakah only on net profit after ignoring stock and receivables.
  • Pay zakah on buildings, tools, and vehicles kept for use.
  • Treat taxes as zakah and subtract them automatically.

Why

A manufacturing and commercial company pays zakah on trade goods, cash, and debts expected to be repaid. Tools, vehicles, buildings, and furnishings kept for use are not zakatable. Profits from the sale of trade goods follow the zakah year of the capital, while work-service profits are zakatable if they remain, reach the nisab, and one year passes.

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6. What is the zakah ruling on money invested in a trustworthy Islamic bank?

  • Zakah is due on the capital and profits when one Hijri year passes, unless the bank pays it properly on the customer’s behalf. (correct answer)
  • Zakah is due only on the profits, not the capital.
  • No zakah is ever due on money placed in an Islamic bank.
  • The customer must pay again even if the bank already paid it properly.

Why

If the bank is truly Islamic and does not deal in riba, investing through it is allowed. Zakah is due on the capital and profits after one Hijri year from when the capital reached the nisab. If the bank can be trusted and pays zakah properly on behalf of customers, that is sufficient for what is held with the bank, but the person still pays zakah on other wealth they own.

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7. May zakah be given to a poor brother who owns house foundations that can be sold?

  • Not for completing the house; if he can sell them, he should use the proceeds for his needs. (correct answer)
  • Yes, zakah should be given so he can complete a luxury house.
  • No, relatives can never receive zakah.
  • Yes, even if the giver is obligated to support him.

Why

A poor person is given zakah to meet real needs such as maintenance and suitable accommodation. If the brother already has sufficient accommodation and owns foundations that can be sold, he should sell them and use the proceeds for himself and his family. If he cannot sell them, he may be given zakah for maintenance and accommodation, but not to complete that house.

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8. What must a guardian do with the wealth of those under their care?

  • Protect it, invest it in their best interests, and pay any zakah due from it. (correct answer)
  • Leave it untouched even if zakah consumes it year after year.
  • Spend it on anything the family requests.
  • Use it freely as payment for being the guardian.

Why

A guardian must look after the wealth of minors or others under guardianship, develop it, and pay zakah due on it. The guardian may only dispose of the wealth in a way that is most likely in the ward’s best interests. Spending it on something unnecessary, such as a villa when sufficient accommodation already exists, is not allowed.

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9. If someone keeps shares in a commercial or industrial company and cannot work out the value of non-zakatable assets to deduct, what should they do?

  • Pay zakah on the market value of the shares each year. (correct answer)
  • Wait until the shares are sold before paying any zakah.
  • Pay zakah only on dividends, even for commercial shares.
  • Donate the shares instead of calculating zakah.

Why

Shares bought for trading are zakatable based on their market value every year. Shares kept for returns have different rulings depending on the company type. For commercial or industrial companies, non-zakatable assets such as equipment and buildings may be deducted if known. If that is difficult, the shareholder should pay zakah on the market value of the shares.

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A note on these answers

These questions are for learning and self-testing. Explanations are drawn from the sources linked on each question and are not a fatwa. For a ruling on your own circumstances, please consult a qualified scholar.

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