• Prayers & Duties >> Zakat & Charity

    Question ID: 7830Country: Pakistan

    Title: My company have given me the options to buy 100 shares of the company at $50 each. (Stock options). These options are not transferable. Today The price of shares is $75 each. I have not yet exercised my right to buy @50. I have intentions to buy these shares @50 once the market price is $100. DO I have to pay zakat on this right to buy shares at this moment in time? This option will expire in the next 4 years (mening i have to excercise this right within next 4 years).

    Question: My company have given me the options to buy 100 shares of the company at $50 each. (Stock options). These options are not transferable. Today The price of shares is $75 each. I have not yet exercised my right to buy @50. I have intentions to buy these shares @50 once the market price is $100. DO I have to pay zakat on this right to buy shares at this moment in time? This option will expire in the next 4 years (mening i have to excercise this right within next 4 years). W"salaam Muzammil

    Answer ID: 7830Posted on: Sep 1, 2020

    Bismillah hir-Rahman nir-Rahim !

    (Fatwa: 2029/323=TB/1429)

     

    Now, you have only intended to buy the shares, you will not have to pay zakah of the shares which are still your right only. You will have to pay zakah of the cash and wealth which you possess presently.

    Allah (Subhana Wa Ta'ala) knows Best

    Darul Ifta,

    Darul Uloom Deoband, India