Minggu, 03 Juli 2011

Zakat on securities

Legal judgment concerning dealing in securities:
A security represents a part of a loan owed by the company or the body that gives this security. A fixed interest, which is not affected by the company's profits or losses, is to be offered on this security. However the company is obliged to repay the loan at a determined time. A security has a nominal value, that is the original value, and a market value, which is determined by demand and supply.

Dealing in securities is prohibited as it brings about a usurious interest. Likewise, disposing of securities by selling or buying is regarded as selling the debt to other than the debtor, which is not lawful.

How to pay Zakah on securities?
Though dealing in securities is not lawful, Zakah is due on their par value, which is to be added to other kinds of property, after reaching the Nisab and the lapse of a full year. The payable amount of Zakah is a quarter of the tithe. All usurious interests gained from securities are to be spent in charitable purposes, in a way to assist the common good except in building mosques and printing copies of the Holy Qur'an.
However, this spending will be regarded a means to get rid of the ill-gotten gain, but not a Zakah. One is not allowed to spend thereof on himself or on his household. It is recommended that the owner should dedicate it to those affected by famines, strains, disasters and the like.

1 komentar:

sufi mengatakan...

Securities can be common stock that is a partnership in the company---that is absolutely HALAL And most securities r indeed common stock. On the other hand, usually all other types of securities are interest-based and so HARAM eg preferred stock, bonds etc.
The writr of this article knows nothing about financial instruments, else he wouldnt say this.

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