Zakat on loans, Government bonds, provident funds, LIC Etc.

VII. Zakat on loans, Government bonds, provident funds, LIC Etc.

Zakat is payable on loans advanced by you to your friends and relatives. It should be treated as cash in hand and Zakat is payable on it. You may deduct loans payable by you if any for arriving at the net amount. Zakat is also payable on all Government Bonds such as Indira Vikas Patrika, IDBI Bonds, Units, LIC Paid up Premiums and all such Postal Savings Certificates Etc. Zakat is also payable on Provident Funds, Earnest Money Deposits in case of contractors, Tender Deposits, Government Bills Receivable, Security Deposits etc.

Zakat on Company shares and mutual fund.

You should pay Zakat on investment in Company Shares calculated at quoted value on the date of Zakat calculation. If the share of your company is not quoted in any stock exchange, then you may use the services of a chartered accountant to arrive at the value. Similarly Zakat is payable on all Mutual Funds, private chits and chit funds. Your contribution in chit funds till the date of Zakat calculation may be taken into account. If you have withdrawn any amount then the net amount should be taken. 

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