Zakaah On Stock And Cash

QUESTION:

I borrowed money to start a small business from home about 2 months ago. I bought a few items ordered by customers who haven’t paid for it yet. I also bought some extra items. Do I pay Zakaah on this stock?

Last Ramadhaan I paid Zakaah on money I had saved but this year I do not meet the Nisaab value. When calculating Zakaah, should I add the stock value to my savings?

ANSWER:

You will add all your cash and the retail value of your stock, then subtract the amount you are owing on the loan. If after subtracting the loan amount the cash and stock equate to the Nisaab, then Zakaah becomes compulsory on that amount.

وإن كان ماله أكثر من الدين زكى الفاضل إذا بلغ نصابا (مختصر القدوري ٥١)
الزكاة واجبة في عروض التجارة كائنة ما كانت إذا بلغت قميتها نصابا من الذهب أو الورق يقومها بما هو أنفع للفقراء والمساكين منهما (مختصر القدوري ٥٧)

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

ANSWERED BY:

Mufti Umar Farooq Rangila

Date: 26 Ramadhaan 1447 / 16 March 2026

CHECKED AND APPROVED BY:

Mufti Yacoob Vally Saheb