Title: My questions are in relation to Zakat: a) Zakat: 2.5% of the total net assets (assets - liabilities). b) Zakat is not applicable on the house under residence. c) Similarly, PF contribution to the extent of contributed by the employer is not subject to Zakat now but will be applicable once received. Please confirm. d) How about car under family use? Will Zakat be applicable on car under use? e) What about plots / shop / office bought for the purpose of investment and not for business? f) It is my understanding that investment in shares / mutual funds is subject to Zakat at the market value. Please confirm.

Question: Salam, My questions are in relation to Zakat: a) Zakat: 2.5% of the total net assets (assets - liabilities). b) Zakat is not applicable on the house under residence. c) Similarly, PF contribution to the extent of contributed by the employer is not subject to Zakat now but will be applicable once received. Please confirm. d) How about car under family use? Will Zakat be applicable on car under use? e) What about plots / shop / office bought for the purpose of investment and not for business? f) It is my understanding that investment in shares / mutual funds is subject to Zakat at the market value. Please confirm. Thanks for all your help.

Answer ID: 25830Posted on: Aug 31, 2020

Bismillah hir-Rahman nir-Rahim !

(Fatwa: 2233/1506/H=1431)

(1) Zakah is wajib on the assets related to Zakah property not on all owned assets.

(2) There is no Zakah on residential houses.

(3) The ruling of paying Zakah shall be applicable after it comes in possession. And until it is in the treasury of the government, it only belongs to the employee but he is not its owner.

(4) No Zakah shall be wajib on the car that is for use.

(5) No Zakah is wajib on the value of plot, shop, and office; however, Zakah shall be wajib on the rent obtained from them or on the asset of business and profits.