About passive and active holdings in Zakat calculator

💰 Everyday Islamic Finance Zakat
#1

السلام عليكم و رحمة الله و بركاته

Just two questions about the Zakat calculator and how to differentiate between active and passive holdings.

  1. A stock that I have been holding for at least 2 years but kept adding shares whenever the price is right, would that consider a passive or active holding?

  2. If I bought a stock before Zakat let’s say by 6 months and planning to hold it for years should I consider it a passive or active holding?

و شكراً لكم و جزاكم الله خير

#2

Walaikumus salaam, and welcome!

In both cases, it would be considered a passive holding since you intend to hold them for the long-term. You’d choose active only if you were buying and selling the stock several times throughout the year.

1 Like