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Zakah on gold and silver

There are different types of commercial commodities that are prepared for buying and selling. Zakah (obligatory charity) should be paid on them provided that their collective value reaches the Nisab (the minimum amount on which Zakah is due) of gold and silver and that their owner has the intention of using them for trade. The Zakah is due at the completion of the Hawl (one full year). It is to be estimated in terms of gold or silver; whichever achieves the interests of poor people in the best way. The origin of this is the saying of Allah (Exalted be He): O you who believe! Spend of the good things which you have (legally) earned meaning that they were earned through commerce as stated by Mujahid and others. Moreover, Al-Baydawy and other scholars mentioned that the phrase "Spend of the good things which you have (legally) earned" refers to the obligatory Zakah. (Part No. 9; Page No. 182


There are different types of commercial commodities that are prepared for buying and selling. Zakah (obligatory charity) should be paid on them provided that their collective value reaches the Nisab (the minimum amount on which Zakah is due) of gold and silver and that their owner has the intention of using them for trade. The Zakah is due at the completion of the Hawl (one full year). It is to be estimated in terms of gold or silver; whichever achieves the interests of poor people in the best way. The origin of this is the saying of Allah (Exalted be He): O you who believe! Spend of the good things which you have (legally) earned meaning that they were earned through commerce as stated by Mujahid and others. Moreover, Al-Baydawy and other scholars mentioned that the phrase "Spend of the good things which you have (legally) earned" refers to the obligatory Zakah. (Part No. 9; Page No. 182) Also, Allah (Exalted be He) says: And those in whose wealth there is a recognised right and commerce is included in the generality of wealth regarding which there is a right that was estimated by the Prophet (peace be upon him) which is a quarter of a tithe. Since the money of commerce is the most important form of wealth, it is more deserving to be included in the Ayah (Qur'anic verse) than any other kind of wealth. Moreover, it is reported on the authority of Samurah ibn Jundub (may Allah be pleased with him) who said: Allah's Messenger (peace be upon him) would order us to pay obligatory alms on what we prepared for trade. (Related by Abu Dawud). In addition, `Umar said to Hamas: "Pay the Zakah of your money", whereupon Hamas replied: "I only have a quiver and some condiments". `Umar said: "Estimate their value and pay the Zakah." Imam Ahmad (may Allah be merciful to him) used this story as a supporting evidence.Moreover, it is narrated on the authority of Abu Hurayrah (may Allah be pleased with him) that the Messenger of Allah (peace be upon him) said: As for Khalid, you wrong him for he confined his armors to be used only for sake of Allah. (Related by Al-Bukhari and Muslim). Al-Nawawy and other scholars are of the view that this Hadith signifies evidence for the obligation of Zakah (Part No. 9; Page No. 183) on commercial commodities; otherwise, the Messenger of Allah (peace be upon him) would not have apologized on behalf of Khalid (may Allah be pleased with him). However, there is a Hadith Marfu` (a Hadith narrated from the Prophet with a connected or disconnected chain of narration) related by Al-Bukhari and Muslim on the authority of Abu Hurayrah (may Allah be pleased with him) that the Prophet (peace be upon him) said: No Sadaqah (obligatory alms) is obligatory on Muslims for their slaves or horses. This Hadith is regarded by Al-Nawawy and other scholars as being evidence that no Zakah is due on personal possessions.


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