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f:466 -    Zakaat on things which are hired out
Country : Secunderabad,
Name : Muhammad Muneeruddin
Question:     What will be the ruling for things, which are stored in showrooms like clothes, vehicles, etc.?  Similarly what is the ruling of things given on rent like cars, articles of supplying company, etc.

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Answer:     Zakaat becomes Compulsory on goods only when they are taken for trade.  For this, the conditions are that the value of the goods should reach the prescribed criterion of Zakaat and 1 year should have passed on them.  The things kept in showrooms, etc. are kept obviously for trade and the Holy Prophet (Sallallahu alaihi wa sallam) has given the order to give Zakaat on trade goods.  There is a Hadith in Sunan Abu Dawood:

Translation: It has been narrated on the authority of Hadhrat Samurah bin Jundub (May Allah be well pleased with him) that the Holy Prophet (Sallallahu alaihi wa sallam) would order to give Zakaat of the goods that we would prepare for trade.  (Sunan Abu Dawood, Hadith No. 1546)

Thus, Zakaat is Compulsory on vehicles, houses and all those things, which are for selling provided their value meets the prescribed criterion.  If at the beginning of the year, their value was already meeting the criterion and their value has increased in the year and the increase remains until the end of the year, then Zakaat should be calculated on this increased amount only.  As given in Fatawa A’alamgiri, Vol. 1, Pg. No. 175, 179.

Zakaat is not Compulsory on things, which are given out for hire.  However, if the income gained from them meets the prescribed criterion, then Zakaat is Compulsory on that amount, when it is more than the basic needs and a year has passed on it.

In light of this, we can say that on cars, houses, trading complexes, and the articles given out by the supplying company for hire, Zakaat is not Compulsory on these articles per se, but on the income gained on them.  As given in Fatawa Tatarkhaniya on the explanatory notes of Fatawa A’alamgiri, Vol. 1, Pg. No. 251.

And Allah (Subhanahu Wa Ta’ala) knows best.

Mufti Syed Ziauddin Naqshbandi Qadri,

[Professor, Islamic Law, Jamia Nizamia,
Founder-Director, Abul Hasanaat Islamic Research Center]
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