Zakaat Wajib On Trade Goods

Zakaat becomes Wajib on goods only when they are taken for trade.  For this the conditions are that the value of the goods should reach the limits of Zakaat (Nisab) 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 the Zakaat on trade goods.

There is a Hadith in Sunan Abu Dawood:

Translation of Hadith: It has been narrated on the authority of Hadhrat Ibn 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, clothes, Zakaat is Wajib on vehicles, houses and all those things, which are for trade, if their value reaches the prescribed limits of Nisab, then Zakaat is Wajib on them.  If at the beginning of the year, their value was already reaching the prescribed limits of Nisab and the value increases 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 Wajib on things, which are given out for hire.  However, if the income gained from them reaches the prescribed limits of Nisab, then Zakaat is Wajib 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 Wajib on these articles per se, but on the income gained on them.  As given in Fatawa Khaniya on the explanatory notes of (Fatawa A’alamgiri, Vol. 1, Pg. No. 251)