Halal or haram
How is zakat calculated on shares, mutual funds and crypto?
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Short answer
Zakat is due at 2.5% on investment assets you have owned for a lunar year once your total zakatable wealth exceeds the nisab. Scholars commonly apply it to the market value of shares held for trading, and to your share of a company's zakatable assets for long-term holdings. In Pakistan, zakat is also deducted at source from dividends on many shares unless you file a CZ-50 declaration.
The basics
- Rate: 2.5% of zakatable wealth.
- Nisab: the threshold — the value of 7.5 tola of gold or 52.5 tola of silver; many scholars use the silver nisab for cash and investments because it is lower.
- Hawl: zakat falls due when the wealth has been held for one lunar year; most people calculate it on a fixed date each year.
Shares: two common methods
| How you hold the shares | Common method | Example |
|---|---|---|
| For trading or resale | 2.5% of the market value on your zakat date | Shares worth Rs 400,000 → Rs 10,000 |
| Long term, for dividends | 2.5% of your share of the company's zakatable assets (cash, receivables, inventory) | If 40% of assets are zakatable: Rs 400,000 × 40% × 2.5% = Rs 4,000 |
| When in doubt | Many scholars advise the market-value method as the precautionary option | — |
Mutual funds and crypto
- Mutual fund units: zakat on the net asset value of your units on your zakat date; some Islamic funds publish the zakatable portion per unit.
- Crypto (for scholars who treat it as wealth): 2.5% of its market value on your zakat date if held as an investment. Scholars who consider crypto impermissible, such as in the June 2026 Darul Uloom Karachi fatwa, advise disposing of it rather than treating it as zakatable wealth.
- Gold held as savings: 2.5% of its market value, counted towards the nisab.
Zakat deducted at source in Pakistan
Under the Zakat and Ushr Ordinance, companies deduct zakat at source from dividends for Muslim shareholders — notices typically state 2.5% calculated on the paid-up value of the share. Similar deductions apply to some savings accounts and fund units. If you prefer to pay zakat yourself, or are exempt (for example under a different school of thought), submit a CZ-50 zakat declaration to your broker or CDC for shares in book-entry form, or to the company's share registrar for physical shares.
Avoid paying twice
- If zakat was deducted from your dividends, subtract it when you calculate your own zakat.
- Keep annual statements from CDC, funds and banks showing deductions.
- Ask a scholar how to treat deductions if you follow a method different from the deduction base.
Roman Urdu mein jawab
Shares aur crypto par zakat kaise nikalein?
Nisab se zyada maal par saal guzarne ke baad 2.5% zakat hai. Trading wale shares par market value ka 2.5%; lambi muddat wale shares par company ke zakat wale assets mein aap ke hisse ka 2.5% — shak ho to market value. Pakistan mein dividend se zakat source par kat-ti hai jab tak CZ-50 declaration jama na ho.
Frequently asked questions
What is a CZ-50 form?
A zakat declaration on non-judicial stamp paper by which an eligible person asks that zakat not be deducted at source from their savings, shares or fund units.
Is zakat due on shares I bought this year?
Zakat is calculated on all zakatable wealth you hold on your zakat date, provided your wealth has been above the nisab for a lunar year, even if individual shares were bought recently.
Is zakat due on a Roshan Digital Account?
Zakat is a personal obligation on your wealth, including RDA balances. Whether it is deducted at source depends on the account and product; check with your bank.
Is zakat payable on retirement or pension funds?
Scholars differ on funds you cannot access. Many say zakat is due once you gain access; ask a scholar for your plan.
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