Abdur Rahman ibn Yusuf Mangera – Q&A- Zakat on Shares
AI: Summary ©
The speaker explains the process of learning Islam and the importance of taking longer term courses to become more confident in understanding Islam. They also mention Rayyan courses and the Islamic Essentials certificate course, which is designed for individuals to take longer lectures and become more aware of Islam topics. The speaker also mentions a program for road lectures and emphasizes the importance of taking longer term courses to become more confident in learning.
AI: Summary ©
How do you calculate Zakat on shares?
Zakat on shares is calculated based on the
Zakatable value of each company.
So when you have a lot of shares,
the way it works is that you actually
become like a minority shareholder.
That's what it is really, especially we're doing
long-term shareholding.
So now in a company, not everything is
Zakatable.
The fixed assets like a building and cars
and trucks, machinery, that will not be Zakatable
in any business.
What is Zakatable in a business is the
inventory, the raw products and the liquid assets.
So you have to determine that for each
company.
Now if you've got many, many shares, it's
difficult to go and look into reports and
balance sheets and things like that and sometimes
people don't even understand that.
So many of the contemporary ulama, they've given
a formula to figure that out.
And the formula is that you take all
of your shares and let's just say you've
got 2,000 pounds worth of shares.
Or let's just say 1,000 for the
sake of ease, 1,000 pound worth of
shares.
You will pay Zakat on 40% of
the assets.
40% because generally in a business, you
would say that 40% are Zakatable assets
and 60% are not.
So you can ignore the 60%.
So you will have to pay Zakat of
2.5% on 40% of your
entire holding.
So on 1,000, 40% of that
would be 400 pounds.
So you would pay Zakat on 400 pounds.
Zakat on 400 pounds is 2.5%
or 1 40th which would be how many
pounds?
It would be 10 pounds.
So really the easier way to do it
is that rather than work out 40%
of your total holding and then 2.5
% of that, there's an easier shortcut which
is that you just look at 1%
of the entire holding.
Because if we take the example of 1
,000 pounds, 40% of that is 400
and 2.5% which is 1 40th
is 10 pounds.
10 pounds is also 1% of 1
,000.
So I just told you why it's 1%,
sorry why you take 1% is because
actually 2.5% of 40% but
it's difficult if you've got many assets to
look at like that.
So what you just do is simply, you
just take the whole amount and say what's
1% of that and that's my Zakat
of it.
The point of a lecture is to encourage
people to act, to get further, an inspiration,
an encouragement, persuasion.
The next step is to actually start learning
seriously, to read books, to take on a
subject of Islam and to understand all the
subjects of Islam at least at their basic
level so that we can become more aware
of what our Deen wants from us.
And that's why we started Rayyan courses so
that you can actually take organized lectures on
demand whenever you have free time especially for
example the Islamic Essentials course that we have
on there, the Islamic Essentials Certificate which you
take 20 short modules and at the end
of that inshallah you will have gotten the
basics of most of the most important topics
in Islam and you'll feel a lot more
confident.
You don't have to leave lectures behind, you
can continue to listen to lectures but you
need to have this more sustained study as
well.
Jazakallah Khair and Assalamualaikum Warahmatullahi Wabarakatuh.