Zakat on shares

Question:

Zaid bought 15 shares in a company for a total of $5000.  Whatever profit is made in the company it is distributed among the share-holders at the end of the year. Is it necessary on Zaid to pay zakat on the $5000 or only on the annual profit?

Answer: حامدا ومصليا ومسلما
Zaid will also have to pay zakat on the $5000.
(See Fatawaa Darul Uloom 6/140, Shami 2/13)
And Allah Ta’aalaa knows best
(Hazrat Mufti) Ahmed Khanpuri (May Allah preserve him)
Mahmoodul Fataawaa (2/39-40)

Author: Ibn Suleman

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