zakat in business according to the rulings of ayatullah sayyid ali husayni sistani

ZAKAT IN BUSINESS

ACCORDING TO THE RULINGS OF

AYATULLAH SAYYID ALI HUSAYNI SISTANI

[103] Take alms out of their property, you would cleanse them and purify them thereby, and pray for them; surely your prayer is a relief to them; and Allah is Hearing, Knowing.

[104] Do they not know that Allah accepts repentance from His servants and takes the alms, and that Allah is the Oft-returning (to mercy), the Merciful?

Sure Tauba, Ayat 103-104

ZAKAT IN BUSINESSACCORDING TO THE RULLINGS OF


[60] Alms are only for the poor and the needy, and the officials (appointed) over them, and those whose hearts are made to incline (to truth) and the (ransoming of) captives and those in debts and in the way of Allah and the wayfarer; an ordinance from Allah; and Allah is knowing, Wise.

Sure Tauba, Ayat 60



[42] And do not mix up the truth with the falsehood, nor hide the truth while you know (it).

Sure Baqarah, Ayat 42



The Qur’an uses the term “sadaqa” for wajib zakat, and conversely it uses the term “zakat” for recommended charity

ZAKAT IN SHI’A FIQH (Hujjatul Islam Sayyid Muhammad Rizvi)

Printed in THE LIGHT Vol.35 (December 2001/Ramadhan 1422)



1861. It is obligatory to pay Zakat on the following things:

1. Wheat 2. Barley 3. Dates 4. Raisins 5. Gold 6. Silver 7. Camel 8. Cow 9. Sheep (including goat) 10. As an obligatory precaution, upon the wealth in business

And if a person is the owner of any of these ten things he should, in accordance with the conditions which will be mentioned later, put their fixed quantity to one of the uses as prescribed.

ISLAMIC LAWSMulla Asgharali M.M. Jaffer

According to the Fatawa of Ayatullah al Uzama Syed Ali al-Husaini SeestaniPublished by THE WORLD FEDERATION (May 1994/Zilhajj 1414)



ZAKAT ON BUSINESS GOODS

Goods earned by commutative contracts, and set aside for investment in business or profit earning, is, as a precaution, liable for Zakat if certain conditions are fulfilled. The rate of Zakat is 1/40.

(i) The owner of the goods should be baligh and sane. (ii) The goods should have reached the taxable limit, which is equal to that of gold and silver. (iii) The goods should have remained for one year ever since the owner intented to invest it for profit. (iv) The intention of investing it for profit should have remained unchanged throughout the year. If the intention changes, like, when he decides to spend it for maintenance, then he will not pay its Zakat. (v) The owner should be actually capable of its disposal throughout the year. (vi) Throughout the year, the owner should have a buyer of the goods equal to the capital or more. If, during the year, he gets a buyer for the goods for less then capital outlay, it will not be obligatory upon him to pay its Zakat.

ISLAMIC LAWSMulla Asgharali M.M. Jaffer

According to the Fatawa of Ayatullah al Uzama Syed Ali al-Husaini SeestaniPublished by THE WORLD FEDERATION (May 1994/Zilhajj 1414)



DIALOGUE ON ZAKAT

* Is zakat payable on all kinds of property?

- No, zakat is payable on the following, each according to certain criteria.

1. Silver and gold coins. 2. Crops, such as wheat, barley, dates, and raisins.3. Camel, cattle, buffaloes, sheep and goats.4. [Revenue from trade].

JURISPUDENCE MADE EASYAbdul Hadi al-Hakim

According to the Edicts of His Eminence Grand Ayatullah as-Sayyid Ali al-Hussaini as SeestaniPublished by Imam Ali Foundation (August 1997/Rabi’uth-Thani 1418)



DIALOGUE ON ZAKAT

The fourth category [of property where zakat becomes payable is revenue from trading]. It is the capital used, for buying and selling, by a person with the aim of making a profit.

The rate of zakat deductible is 2.5% when all the following conditions are met:

1. The owner should have attained adulthood and be sound in mind.2. The property should attain the minimum outlined in silver and gold monetary means of exchange.3. The lapse of one (tax) year on it, in kind, from the date it was intended for trading and making profit.4. The intention to make profit should remain constant during the entire year. In other words, if you appropriate some of the money you set aside for the purpose of trading, or spend part of it on buying provisions during that year, no zakat shall be due.5. The right of having free hand in the capital throughout the entire year.6. The aim behind the working capital should be economic activity, i.e. not tying it up.

JURISPUDENCE MADE EASYAbdul Hadi al-Hakim

According to the Edicts of His Eminence Grand Ayatullah as-Sayyid Ali al-Hussaini as SeestaniPublished by Imam Ali Foundation (August 1997/ Rabi’uth-Thani 1418)



6. Obligation to pay zakat on money [capital] used in trading:

This money is that which is owned by a person, as a means of exchange [capital], intending to trade with it, earn a profit and, eventually, a living. It is obligatory, as a matter of ihtiyat, to pay zakat due on it, which is 2.5%, provided the following conditions are fulfilled:

1.The owner is adult and sound in mind.2. The money should reach the bench mark of gold or silver. (For gold it is fifteen mithqal sairafi (of coins and bullion - a unit of weight, equivalent to 4.608 grams), then every three mithqals thereafter. As for silver, it is one hundred and five mithqals, then every twenty one mithqals thereafter - Al-Masaa’il, p.221. 3.The lapse of one year on the [actual amount] of money, i.e. from the time it was intended for making a profit. 4.The intention to make profit should be constant the whole year, in that if the person changed his mind and appropriated some or spent some of it [money] onliving expenses, for example, zakat will not become obligatory. 5.The ability of the owner to have the right of disposal over it for the whole year. 6.The amount of capital should be intact or there was an increase [profit] in it during the whole year. If, however, there was a decrease during the year, zakat will not become obligatory". Al-Masaa’il, p.226.

CURRENT LEGAL ISSUESMurtadha al-Kashmiri

Selection of answers by Ayatullah Sayyid Ali al-Hussaini as Seestani (December 1996/ Rajab, 1414)



IN THE NAME OF ALLAH

It is obligatory to pay Zakat from the Invested Money on obligatory precaution. With the conditions mentioned in the books of epistol. You can go or take the view others in this particular issues. But the issue of knowledgeble and knowledgeble have to be observed. Mean you see the view of the most knowledgeble after his eminence to you. If he don’t have verdict you check the most knowledgeble after him and so on.

FATWA



1) When publication / distribution of beneficial Islamic books is to be disbursed from Zakat then as a precaution one should get permission from Hakime Shar'i 2) Zakat is on specific items : 4 crops, 3 animals and by obligatory Precaution , it is also applicable to wealth in business on condition that : it should have remained for one year since he intended to invest it for profit,

owner is capable of its disposal throughout the year,there is a buyer for the goods equal to the capital or more. During the year if he gets a buyer for less than the capital, then Zakat will not be obligatory. 3) Zakat will not become obligatory on a house/building except when it is intended for business ( i.e. selling the house or given for renting) and having fulfilled the conditions mentioned in response to question (2), then zakat is to be paid as obligatory precaution .

FATWA



Majority of Shia Jurists (mujtahiden) consider the payment of zakat from the business merchandise as a recommended zakat. However, Ayatullah Sistani has made that ihtiyat-e-wajib, that is, obligatory based on precaution. See Ayatullah as-Sistani, Minhaju s-Salihiyn, vol. 1. P.367; also see Islamic laws, p.350.

ZAKAT IN SHI’A FIQH Hujjatul Islam Sayyid Muhammad Rizvi

Published by THE BILAL MUSLIM MISSION TANZANIAin THE LIGHT Vol.35 (December 2001/Ramadhan 1422)





END OF PRESENTATION

zakat in business according to the rulings of ayatullah sayyid ali husayni sistani

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