Zakat on business stock
Question
A shopkeeper is finding difficulty in counting his business stock for Zakat calculations due to the number of items. Can an estimate suffice? Also, on which value will Zakat be calculated, the cost price or the sale price?
بسم الله الرحمن الرحیم
Answer
An estimate is not sufficient. It is necessary to give 1/40th of the stock, alternatively its value can be given. If the value option is chosen, then the calculation will be based on the current market value (how much it would easily sell for). This maybe the same, or more, or less than the cost price.
Allah knows best
Yusuf Shabbir
23 Rajab 1440 / 29 March 2019
Approved by: Mufti Shabbir Ahmed and Mufti Muhammad Tahir