Zakat Questions and Answers
Examples: Maryam buys a house with the intention of selling it on a later date to make a profit. The value of the house is subject to zakat.
Safiya is buying a house to rent out to tenants. Perhaps, if its value increases substantially in a few years, she may consider selling it, but when the contracts are exchanged she has no fixed plans about selling it. The value of Safiya's house is not subject to zakat, although any income she earns by letting it out will be.
What part of my wealth is "Zakatable"?
Gold and Silver: Any gold or silver you possess is zakatable, including jewellery according to Hanafi school, because these two metals have intrinsic monetary value.
Other precious metals and stones are not zakatable unless they were acquired for the purpose of trade.
Cash or its Equivalent: Cash at home, in bank accounts, savings, money lent to others,saving certificates, bonds, shares, investment certificates and so on, are all taken into account when calculating zakat.
Stock Purchased for Trade: Any goods you have bought with the intention of selling are included in your zakatable wealth.