Zakat On Loss And Partnership
Thanka faisal hatoon for your kind attention. Zakat calculator is easy on property earnings what about future market situation where I have lost 50% of my capital over all … there were few positive trades wheee I earned a little while most trades ended in hige loss, so my net gain is negative here. Do I still need to pay zakat on few poaitive trades or this has to be calculated on net gain or net loss ? Thanks once again for your valuable contribution. Adnan
No problem. If you did not make any money or lost money in trading then you can enter 0 in the capital gains box in the Zakat Calculator.
Thank you for your very kind words and prayers. If you conduct futures/equities trading as a professional trader then an ijtihad can be made to consider the initial investment as a means of production and only pay zakat on the capital gains. However, such situation is only applicable to very few traders. Generally such traders have trading certifications, licenses with the state, several years of experience, etc. If you don’t consider yourself a professional trader then the total current value of all of your assets is subjected to the assets zakat at the rate of 2.5% per year, in addition to any 5% or 10% zakat on any earnings. Please keep in mind that taxes paid to the government are deductible from your total zakat obligation. Depending on one’s country of residence and taxes paid, the zakat amount is generally minimal if anything after tax deduction.