ZAKAT IN BUSINESS

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ZAKAT IN BUSINESS

• ACCORDING TO THE RULINGS OF
• AYATULLAH SAYYID ALI HUSAYNI SISTANI

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ZAKAT IN BUSINESSACCORDING TO THE RULLINGS
OFAYATULLAH SAYYID ALI HUSAYNI SISTANI
103 Take alms out of their property, you would
cleanse them and purify them thereby, and pray
for them surely your prayer is a relief to them
and Allah is Hearing, Knowing. 104 Do they not
know that Allah accepts repentance from His
servants and takes the alms, and that Allah is
the Oft-returning (to mercy), the Merciful?
Sure Tauba, Ayat 103-104
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ZAKAT IN BUSINESSACCORDING TO THE RULLINGS
OFAYATULLAH SAYYID ALI HUSAYNI SISTANI
60 Alms are only for the poor and the needy,
and the officials (appointed) over them, and
those whose hearts are made to incline (to truth)
and the (ransoming of) captives and those in
debts and in the way of Allah and the wayfarer
an ordinance from Allah and Allah is knowing,
Wise. Sure Tauba, Ayat 60
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ZAKAT IN BUSINESSACCORDING TO THE RULLINGS
OFAYATULLAH SAYYID ALI HUSAYNI SISTANI
42 And do not mix up the truth with the
falsehood, nor hide the truth while you know
(it). Sure Baqarah, Ayat 42
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ZAKAT IN BUSINESSACCORDING TO THE RULLINGS
OFAYATULLAH SAYYID ALI HUSAYNI SISTANI
The Quran uses the term sadaqa for wajib
zakat, and conversely it uses the term zakat
for recommended charity ZAKAT IN SHIA FIQH
(Hujjatul Islam Sayyid Muhammad Rizvi) Printed
in THE LIGHT Vol.35 (December 2001/Ramadhan 1422)
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ZAKAT IN BUSINESSACCORDING TO THE RULLINGS
OFAYATULLAH SAYYID ALI HUSAYNI SISTANI

• 1861. It is obligatory to pay Zakat on the
  following things
• Wheat
• Barley
• Dates
• Raisins
• Gold
• Silver
• Camel
• Cow
• Sheep (including goat)
• As an obligatory precaution, upon the wealth in
  business
• And if a person is the owner of any of these ten
  things he should, in accordance with the
  conditions which will be mentioned later, put
  their fixed quantity to one of the uses as
  prescribed.
• ISLAMIC LAWS
• Mulla Asgharali M.M. Jaffer
• According to the Fatawa of Ayatullah al Uzama
  Syed Ali al-Husaini Seestani
• Published by THE WORLD FEDERATION (May
  1994/Zilhajj 1414)

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ZAKAT IN BUSINESSACCORDING TO THE RULLINGS
OFAYATULLAH SAYYID ALI HUSAYNI SISTANI
ZAKAT ON BUSINESS GOODS Goods earned by
commutative contracts, and set aside for
investment in business or profit earning, is, as
a precaution, liable for Zakat if certain
conditions are fulfilled. The rate of Zakat is
1/40. (i) The owner of the goods should be
baligh and sane. (ii) The goods should have
reached the taxable limit, which is equal to that
of gold and silver. (iii) The goods should have
remained for one year ever since the owner
intented to invest it for profit. (iv) The
intention of investing it for profit should have
remained unchanged throughout the year. If the
intention changes, like, when he decides to spend
it for maintenance, then he will not pay its
Zakat. (v) The owner should be actually capable
of its disposal throughout the year. (vi)
Throughout the year, the owner should have a
buyer of the goods equal to the capital or more.
If, during the year, he gets a buyer for the
goods for less then capital outlay, it will not
be obligatory upon him to pay its Zakat.
ISLAMIC LAWS Mulla Asgharali M.M.
Jaffer According to the Fatawa of Ayatullah al
Uzama Syed Ali al-Husaini Seestani Published by
THE WORLD FEDERATION (May 1994/Zilhajj 1414)
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ZAKAT IN BUSINESSACCORDING TO THE RULLINGS
OFAYATULLAH SAYYID ALI HUSAYNI SISTANI
DIALOGUE ON ZAKAT   Is zakat payable on all
kinds of property? -  No, zakat is payable on
the following, each according to certain
criteria. 1.  Silver and gold coins. 2.  Crops,
such as wheat, barley, dates, and raisins. 3. 
Camel, cattle, buffaloes, sheep and goats. 4. 
Revenue from trade. JURISPUDENCE MADE
EASY Abdul Hadi al-Hakim According to the Edicts
of His Eminence Grand Ayatullah as-Sayyid Ali
al-Hussaini as Seestani Published by Imam Ali
Foundation (August 1997/Rabiuth-Thani 1418)
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ZAKAT IN BUSINESSACCORDING TO THE RULLINGS
OFAYATULLAH SAYYID ALI HUSAYNI SISTANI
DIALOGUE ON ZAKAT The fourth category  of
property where zakat becomes payable is revenue
from trading.  It is the capital used, for 
buying and selling,  by a person with the aim of
making a profit. The rate of zakat deductible is
2.5 when all the following conditions are
met 1. The owner should have attained adulthood
and be sound in mind. 2.  The property should
attain the minimum outlined in silver and gold
monetary means of exchange. 3.  The lapse of one
(tax) year on it, in kind, from the date it was
intended for trading and making profit. 4.  The
intention to make profit should remain constant
during the entire year.  In other words, if you
appropriate some of the money you set aside for
the purpose of trading, or spend part of it on
buying provisions during that year, no zakat
shall be due. 5.  The right of having free hand
in the capital throughout the entire year. 6. 
The aim behind the working capital should be
economic activity, i.e. not tying it up.
JURISPUDENCE MADE EASY Abdul Hadi
al-Hakim According to the Edicts of His Eminence
Grand Ayatullah as-Sayyid Ali al-Hussaini as
Seestani Published by Imam Ali Foundation (August
1997/ Rabiuth-Thani 1418)
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ZAKAT IN BUSINESSACCORDING TO THE RULLINGS
OFAYATULLAH SAYYID ALI HUSAYNI SISTANI
6. Obligation to pay zakat on money capital
used in tradingThis money is that which is
owned by a person, as a means of exchange
capital, intending to trade with it, earn a
profit and, eventually, a living. It is
obligatory, as a matter of ihtiyat, to pay zakat
due on it, which is 2.5, provided the following
conditions are fulfilled 1.The owner is adult
and sound in mind. 2. The money should reach the
bench mark of gold or silver. (For gold it is
fifteen mithqal sairafi (of coins and
bullion - a unit of weight, equivalent to 4.608
grams), then every three mithqals thereafter.
As for silver, it is one hundred and five
mithqals, then every twenty one mithqals
thereafter - Al-Masaail, p.221. 3.The lapse of
one year on the actual amount of money, i.e.
from the time it was intended for making a
profit. 4.The intention to make profit should be
constant the whole year, in that if the
person changed his mind and appropriated some or
spent some of it money onliving expenses,
for example, zakat will not become obligatory.
5.The ability of the owner to have the right of
disposal over it for the whole year. 6.The
amount of capital should be intact or there was
an increase profit in it during the whole
year. If, however, there was a decrease during
the year, zakat will not become obligatory".
Al-Masaail, p.226. CURRENT LEGAL ISSUES Murtadha
al-Kashmiri Selection of answers by Ayatullah
Sayyid Ali al-Hussaini as Seestani (December
1996/ Rajab, 1414)
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ZAKAT IN BUSINESSACCORDING TO THE RULLINGS
OFAYATULLAH SAYYID ALI HUSAYNI SISTANI
IN THE NAME OF ALLAH It is obligatory to pay
Zakat from the Invested Money on obligatory
precaution. With the conditions mentioned in the
books of epistol. You can go or take the view
others in this particular issues. But the issue
of knowledgeble and knowledgeble have to be
observed. Mean you see the view of the most
knowledgeble after his eminence to you. If he
dont have verdict you check the most
knowledgeble after him and so on. FATWA
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ZAKAT IN BUSINESSACCORDING TO THE RULLINGS
OFAYATULLAH SAYYID ALI HUSAYNI SISTANI
1) When publication / distribution of beneficial
Islamic books is to be disbursed from Zakat then
as a precaution one should get permission from
Hakime Shar'i   2) Zakat is on specific items 4
crops, 3 animals and by obligatory Precaution ,
it is also applicable to wealth in business on
condition that it should have remained for one
year since he intended to invest it for
profit, owner is capable of its disposal
throughout the year, there is a buyer for the
goods equal to the capital or more. During the
year if he gets a buyer for less than the
capital, then Zakat will not be obligatory.   3)
Zakat will not become obligatory on a
house/building except when it is intended for
business ( i.e. selling the house or given for
renting) and having fulfilled the conditions
mentioned in response to question (2), then zakat
is to be paid as obligatory precaution . FATWA
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ZAKAT IN BUSINESSACCORDING TO THE RULLINGS
OFAYATULLAH SAYYID ALI HUSAYNI SISTANI
Majority of Shia Jurists (mujtahiden) consider
the payment of zakat from the business
merchandise as a recommended zakat. However,
Ayatullah Sistani has made that ihtiyat-e-wajib,
that is, obligatory based on precaution. See
Ayatullah as-Sistani, Minhaju s-Salihiyn, vol.
1. P.367 also see Islamic laws, p.350. ZAKAT
IN SHIA FIQH Hujjatul Islam Sayyid Muhammad
Rizvi Published by THE BILAL MUSLIM MISSION
TANZANIA in THE LIGHT Vol.35 (December
2001/Ramadhan 1422)
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ZAKAT IN BUSINESSACCORDING TO THE RULLINGS
OFAYATULLAH SAYYID ALI HUSAYNI SISTANI
END OF PRESENTATION