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Zakat Application On Following Cases
I know that on loan given to somebody javed ghamidi has view that zakat is not applicable , if the other person has money , but what about following cases
1) You have invested somewhere and now the deal is closed with profit , but your money along with profit has not yet been returned to you for more than 1 year , should zakat apply on that.
2) You have invested and there is no profit , the deal is closed , and your money is not returned to you yet for more than 1 year , still zakat apply on that .
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8 Replies
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Zakat Application On Following Cases
updated 3 years, 9 months ago
4 Members
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8
Replies
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Zakat has no bearing on whether the investment money is returned to you or not. If you have invested your money, you most likely have an asset (share in business, stock, etc.). In that case 2.5% zakat will be due once a year.
Zakat on investment profit is due the day you receive the cash in hand. If you’re not actively involved in business (no labor / effort) then 10% of the profit, otherwise 5% of the profit.
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To clarify my confusion , investment here is not an asset owned by myself ( like business share or stock etc ) , it is that the money i gave is with somebody else who used it for business without my involvement in any ownership of any asset , the problem is that , as of money it is clear that somebody has my money and he will return it so i am asking whether it is in the category of someone owing me money , like in just straight forward giving loan case .
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To add , the investment thing is closed as described in my original question. The question is of somebody has to return it , should it be considered my asset or in category of someone owing me money as in directly giving loan case.
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If it’s a loan you have given to someone then you don’t need to pay zakat on it.
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But what if it is not loan , but the other person is not able to return it , for example for a long time like in years ? , Should one still give zakat , because it is not in our possession and one is not able to retrieve it .
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Please make up your mind what is the money that you have given to another person. First you stated that it was an investment, then you stated that it wasn’t. Now you’re saying that it’s not even a loan. That only leaves one thing according to my understanding and that is infaq (charity). There’s no zakat on the amount that you give in infaq.
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If the person cannot return the loan back then can we consider that as zakat?
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Please post it as a separate question as it is not directly related to the original question.
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