Zakaah On Liquidated Investment

QUESTION:

I am writing to seek your guidance regarding my obligation to pay Zakaat on an investment that I made. I invested a total of R100,000 into a business involving the buying and selling of livestock, and as such, paid Zakaat as stock in trade as advised by a Mufti at that time.

Currently, things have become a little challenging for the business and the dynamics have changed. The investment has liquidated and there are also some debtor recoveries underway through the courts. As it stands, if the investment was liquidated today, it would be valued at an estimated R15,000. However, the investment certificate indicates a value of R150,000 based on the original terms of the investment, before the business entered business rescue.

During this period of business rescue, I am not deriving any income or profits from the investment. Given these circumstances, I am unsure how to approach the calculation of Zakaat. Specifically, I would appreciate your guidance on the following points:

1. How should I determine the Zakaat obligation based on the current situation, considering the significant difference between the liquidation value and the investment certificate value?

2. Should I base my Zakaat on the estimated R15,000 liquidation value or the R150,000 investment certificate, of which R50,000 is unrealized profit, or some other evaluation method due to the illiquid state of this asset?

3. Since I do not currently receive any income from this investment and this investment has been liquidated for at least 5 to 7 years due to the business rescue recovery process, which is also not a guaranteed outcome. How should this factor into my Zakaat calculation?

ANSWER:

Zakaat will be paid on the actual / real value owned in the investment by each partner and not the value indicated in the investment certificate. For example, Partner A’s actual / real share in the investment is evaluated at R15 000, then he will pay 2.5% of that amount.

وجاز دفع القيمة في زكوة وتعتبر القيمة يوم الوجوب وقالا: يوم الأداء وفى الشامي يعتبر يوم الأداء بالإجماع وهو الأصح. (الدر المختار و حاشية ابن عابدين 2/286)

کس وقت کی قیمت معتبر ہوگی؟

چوپایوں اور مویشیوں کی زکوۃ میں بالاتفاق زکوۃ ادا کرتے وقت قیمت کا اعتبار ہوگا  (فتاوی عثمانيہ 3/320)

 ALLAH TA’ALA ALONE IN HIS INFINITE KNOWLEDGE KNOWS BEST!

ANSWERED BY:

Mufti Abdul Kader Fazlani

Date:  21 Ramadhaan 1447 / 11 March 2026

CHECKED AND APPROVED BY:

Mufti Yacoob Vally Saheb