Question: Al-Salamu Alaykum. Kindly answer my question. I have invested a certain amount of money in a hall investment. The reason for this is to earn an income from my investment as I have  retired. I have previously paid the zakah due on this  money in July, last year. I began to invest the money from August to December last year. Now, shall I pay the zakah on the entire sum of money that I invested or only on the profits generated over a year? I am not working in trade. I am hoping to generate an income from my investment.

Answer: Praise be to Allah. May Allah’s peace and blessings be upon Prophet Muhammad and upon His family and Companions!

Thank you for contacting Al-Azhar Fatwa Global Center. According to the chosen opinion, you have to calculate the money you have (the capital and the profits) and pay 2.5 % of the entire sums to the legal recipients of zakah as mentioned in Surat Al-Tawbah: “Alms-tax is only for the poor and the needy, for those employed to administer it, for those whose hearts are attracted ˹to the faith˺, for ˹freeing˺ slaves, for those in debt, for Allah’s cause, and for ˹needy˺ travellers. ˹This is˺ an obligation from Allah. And Allah is All-Knowing, All-Wise” (Quran, 9:60). In all cases, the money must reach the nisab (the minimum amount upon which the zakah is due, which is equal to the value of 85 grams of gold) and one lunar year must pass after possessing the nisab. At last, be assured that the company in which you invest your money has not paid the zakah due on that money.