Allah Ta’ala has put the most minimum burden of monetary obligations on Muslims so that paying Zakah becomes convenient for every sahib-un-nisaab Muslim.
Firstly, it is not obligatory to pay Zakah on every asset. Rather only those assets are the subject matter of Zakah that have the potential of growth or increase. These assets may be broadly classified as follows:
1- Trading assets.
2- Cash & Cash Equivalent (like prize bonds, Travelers Checks etc)
3- Gold and silver
4- Livestock (goats, sheep, cows and camels)
5- Agricultural output. Read more... (642 words, estimated 2:34 mins reading time)
Q. In your June 1990 issue you mention on page 19: “Zakah is not liable on diamonds, immaterial of how high their value may reach”.Diamonds are an expensive marketable commodity like any other valuable item, regardless of whether they are used in making jewellery or retained as investment. They bring a fairly high capital gain. When gold in any from is subject to Zakah as is value of any other item held for long or short term investment and business purposes. Why should the value of diamond be exempt? Muhammad Hasan Chand Clifton, Karachi.
A. If diamonds or precious stone are purchased for trading purpose, i.e. with a clear intention of their resale, they are certainly subject to Zakah like any other item purchased with the same intention. But if a diamond or a precious stone is kept for personal use only, in that case Zakah is not obligatory on its value. Read more... (442 words, estimated 1:46 mins reading time)