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Institutional Fatwa Database

Comprehensive Shariah analysis of 50+ modern financial instruments, assets, and liabilities for the 2026 global economy.

Digital Assets

Bitcoin & Crypto-Currency Staking

Cryptocurrencies held for investment are subject to 2.5% Zakat on their market value. If you are staking coins, Zakat is due on both the principal amount and the rewards earned, provided they are Shariah-compliant utility or exchange tokens.

Web3

Zakat on NFTs and Digital Art

If NFTs are purchased for resale (flipping), they are treated as trading goods. 2.5% Zakat is due on the current floor price or estimated market value in ETH/SOL at the time of your Zakat anniversary.

Bullion

Gold Jewelry and Ornaments

Zakat is obligatory on all gold jewelry if it reaches the Nisab (87.48g). This applies to worn jewelry, broken items, and stored coins. The calculation is based on the current market rate of gold on your specific Zakat date.

Bullion

Silver Nisab and Assets

The Silver Nisab is 612.36 grams. If your total wealth (Cash + Gold + Silver + Business Stock) exceeds the value of this much silver, you are liable for Zakat at a rate of 2.5%.

Social Finance

Zakat on Committees (BC)

If you have paid into a committee but haven't received it yet, that money is your asset; pay Zakat on the total paid. If you have already received the committee, it is a debt; subtract the remaining installments from your total wealth.

Insurance

Life Insurance Policies

For conventional life insurance, Zakat is only due on the total premiums paid by you (the principal), not the interest or bonuses promised. For Takaful, Zakat is due on the surrender value of the policy.

Real Estate

Plots bought for Investment

If a plot or property is purchased with the 'Niyyah' (intention) of selling it for profit, it is a trading asset. You must pay 2.5% Zakat on its current market value every year, regardless of whether it is sold or not.

Real Estate

Zakat on Rental Income

There is no Zakat on the value of a building or apartment that is rented out. Zakat is only due on the accumulated rent money if it remains in your possession until your Zakat anniversary.

Commercial

Shop Inventory & Dead Stock

Zakat is calculated on the current retail value of all stock-in-trade. Even 'dead stock' (slow-moving items) must be valued at what they would sell for today. Furniture, laptops, and machinery used in the shop are exempt.

Commercial

Business Partnerships (Joint Venture)

In a partnership, Zakat is not paid on the total business value. Each partner pays Zakat on their share of the liquid assets (Cash + Stock + Receivables) after deducting the business's short-term debts.

Liabilities

Deducting Personal Loans

Money you owe to others can be subtracted from your wealth. For long-term loans (mortgages/car), only deduct the installments due for the next 12 months, not the entire future balance.

Assets

Money you have Lent to Others

If you lent money to someone who is likely to pay back, you must pay Zakat on that amount every year. If the person is likely to default, you only pay Zakat once you actually receive the money back.

Agriculture

Ushr on Seasonal Crops

Ushr (10%) is due on crops watered by rain. If you use tube-wells or purchased water, the rate is 5%. Unlike Zakat on wealth, Ushr is due at every harvest, not once a year.

Livestock

Zakat on Farm Animals

Zakat is due on grazing animals (Saimah) if they reach Nisab (e.g., 40 goats or 30 cows). If animals are kept for trade (buying/selling meat), 2.5% of their total value is due instead.

Income

Zakat on Monthly Salary

There is no Zakat on the salary as you receive it. However, any portion of the salary that you save and hold until your Zakat date must be included in your total wealth calculation.

Retirement

Provident Fund (PF) Calculations

Zakat is not due on the employer's contribution until you receive it. For your own voluntary contributions, many scholars suggest paying 2.5% annually as you have ownership of that portion.

Wirasat

Zakat on Inherited Wealth

Once the inheritance is legally yours and in your possession, the one-year lunar cycle (Hawl) starts. You will pay Zakat on it on your next Zakat anniversary.

Philanthropy

Zakat vs Sadaqah-e-Jariyah

Zakat is a mandatory 2.5% pillar, whereas Sadaqah is voluntary. Zakat can only be given to specific categories (Asnaf) mentioned in the Quran, while Sadaqah can be given to anyone or any cause.

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