Zakat is calculated on various types of wealth, with the most common Zakatable assets including:
- Gold and Silver – Traditionally, Zakat was due on precious metals. Today, their modern equivalent is cash in any form.
- Cash – This includes money held in bank accounts, on hand, or even stored at home.
- Cryptocurrency – Digital assets such as Bitcoin, Ethereum, and other cryptocurrencies are considered zakatable, similar to cash.
- Stocks and Shares – If purchased for investment, Zakat is due on their current market value. If part of long-term holdings, only zakatable assets within the company’s valuation apply.
- Business Inventory – Goods intended for trade or resale are zakatable. In modern economies, stocks (equities) are among the most common business assets.
- Investment Properties – Properties bought for resale are zakatable. However, rental properties are not, though rental income is subject to Zakat.
- Pension Funds – If accessible, pension savings and retirement funds may also require Zakat calculations.
Each category has specific rulings, and it is important to assess wealth correctly when calculating Zakat.
