Question
I have an investment that invests in livestock, I have requested a Rand value of the investment to determine my zakaat for 1436. I would like to know if the way I have gone about calculating my zakaat is correct? I was advised that the value of zakaat on livestock is greater than the respective rand value?
Answer
If your investment entails a partnership or joint ownership in livestock then the zakaat has to be calculated according to the number of heads of livestock and not on rand value. There is a table that Shariah has drawn up for zakaat on livestock. You and your partners will have to calculate your zakaat according to this table. However, after you have determined the number of animals to be given in zakaat, you are allowed to give the rand value of those animals in zakaat instead of the actual animals.
If on the other hand, you are not a partner in ownership of the animals but invested your money only to share in profits, then there is no zakaat on the animals but on the cash money you accumulate after one Islamic year. For example, you gave someone R100,000 to do business with the condition that you will receive 50 percent of whatever profits he makes in any Halaal trade. This person then decides to trade in livestock with your cash capital. He buys and sells sheep or cattle, after which he passes on to you half of the profits accrued. In such a case, you are not liable for zakaat on the stock. Instead your zakaat will be payable on the cash money you received that remains in your possession after 12 Islamic months.
Allah Ta’ala knows best
If your investment is any different to what I have described above, please let me know, for the ruling might differ
Mufti Siraj Desai