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Fatwa #132322 August 2005Saudi Arabia

I had made an investment in bank amounting RM20000 . After 1 year, I get dividen,in which zakaat for the business already paid. Should I pay zaakat for the saving?

Question

I had made an investment in bank amounting RM20000 . After 1 year, I get dividen,in which zakaat for the business already paid. Should I pay zaakat for the saving?

Answer

In order for us to issue a ruling on the Zakat of the dividends, it is important to know whether the dividends are in compliance with the Shari’ah laws of investing or not.

Generally, the investments in a conventional bank is not Shari’ah compliant. As such, the dividends will not be permissible and not Zakaatable as well. Zakaat will be due only on the capital amount if one year passed by on that amount and all the other laws of Zakaat are taken into consideration.

and Allah Ta'ala Knows Best

Mufti Ebrahim Desai

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