Business Fatwa QA

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Q: Reducing one's Zakat obligations by divesting assets and investing in business or real estate

If one is having savings in gold and silver and this is causing a high zakat, is it permissible to reduce the zakat by investing his wealth instead in business and real estate? For example we invest in some other business as a shareek or we buy a land?

Answer: 

First of all it is a very much bad intention that he is intending to reduce Zakat, while the wealth is the bounty of Allah and we are given it only for use and receive its benefits. And Zakat is command of Allah and rights of poor or needy. However, Investment in any business also liable of paying Zakat.

There is no harm in buying and keeping gold and silver as an investment as long as you are paying zakat for it.

And Allah Ta’ala Knows Best

Mufti Asadulla Qasmi

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