Zakat calculation for stocks

  This is per advice of a Mufti sahab in Hyderabad. 

 (1) Stocks which are not bought for long term. Includes those held for swing trading like duration upto few months to around 2 years . The basis is that you don't want to stay with the comoany for long term. For such stocks, 2.5% of entire portfolio will be the zakat

 (2) stocks bought for long term. Includes stocks bought for 3 to 10 years duration. For such stocks, zakat is applicable on the items like raw material and finished products part as seen in related headings the balance sheet of company . It will not be applicable on the assets part of the company like machines, land, buildings etc.

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