Are All Kinds of Assets Subject to Zakat?

Not all kinds of assets are subject to Zakat, but several categories are considered Zakatable, depending on their nature.

The following are generally considered Zakatable assets:

• Cash and liquid investments
• Receivables
• Gold and silver
• Business stock and assets
• Investments in Zakatable assets (shares, unit trusts, equity, and Shariah-compliant cryptocurrencies)
• Pensions
• Debts owed to you
• Agricultural produce
• Livestock

Historically, Imam Malik limited Zakat to just three types of assets: gold, silver, and livestock. However, contemporary scholars have extended this interpretation to include many other assets based on the Qur'an and Sunnah.

What the Qur’an Says About Zakatable Assets

The Qur'an provides general guidelines on what wealth is subject to Zakat:

• Surah Al-Taubah (9:103): Mentions “amwal” (worldly possessions or wealth).
• Surah Al-Baqarah (2:267): Refers to “what you have earned” and “what we have produced for you from the earth.”

Zakat During the Time of the Prophet Muhammad (PBUH)

During the time of the Prophet (PBUH), Zakat was paid on the following assets:

• Camels
• Sheep
• Gold and silver
• Agricultural output
• Goods designated for trade

Personal items like clothes and household furniture were exempted.

Zakat in Modern Times

There are differing opinions on what is considered Zakatable today:

• Strict interpretation: Only items specifically mentioned in the Qur'an and Sunnah (e.g., dates, wheat, camels, gold, and livestock).
• Broader interpretation: Includes items similar to those mentioned above, such as vegetables, debts, wages, salaries, professional income, and returns on fixed assets.
• Inclusive interpretation: Encompasses all forms of income and wealth, including modern assets like investments and property.

Ultimately, interpretations may vary, but the consensus is that a wide range of assets are subject to Zakat.

And Allah knows best!