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Fatwa CenterZakah on invested money
Question
I gave some money to my relative for investment a few months ago. Is this money due for Zakah or only their profit?
Answer
Praise be to Allah, the Lord of the World; and blessings and peace be upon our Prophet Muhammad and upon all his Family and Companions.
Zakah is compulsory in all the invested money if it reaches the Nisaab by itself or if it reaches it when added to the debts, profits or other income from transactions and if the person has possessed the money for a lunar year.
The money you gave to your relative is included in this. So, you add it to the money you have. Know also that the year of what you gave to your relative is the same as the year of your other property and that the Zakah is due not only in the money but also on its profits for the conditions cited above.
Allah knows best
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