Zakaat on Redundant Stock

Q:

1. Can a person give out redundant stock as zakaat? I.e. He discharges his zakaat by giving out the redundant stock to zakaat recipients, hence offsetting his zakaat.
2. The original value of the stock was for eg. R20000, but is now only valued at R10000. Will R20000 of his zakaat be discharged or only R10000?

A: 

1. Zakaat is a Deeni obligation that one discharges once a year. Since one is discharging his wealth for the sake of Allah Ta’aala, one should discharge his zakaat from that wealth that has value in his sight. Allah Ta’aala says in the Quran: “And do not give that which you yourself will not be pleased to accept.” If a person discharges his zakaat from his good and valuable wealth, Allah Ta’aala will bless him with increase and barkat in his wealth. If one discharges zakaat of his goods, he should give one fortieth of the goods or its equivalent in cash. However, in the event that one discharges his zakaat through redundant stock, his zakaat will be valid.
2. The market-rated value of the goods should be considered at the time of discharging one’s zakaat through the stock. Market value refers to the price which the consumer (i.e. the public) generally pays to obtain the item regardless of whether one purchased it for a higher price or lower price.

(أو نية التجارة ) في العروض إما صريحا ولا بد من مقارنتها لعقد التجارة كما سيجيء أو دلالة بأن يشتري عينا بعرض التجارة (الدر المختار 2/267) (فتاوى محمودية 14/130) 

Answered by:

Mufti Zakaria Makada

Checked & Approved:

Mufti Ebrahim Salejee (Isipingo Beach)