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Salaam alaikum

Let's say I have 1,000 stocks. I sell 100 of them this year for $100 each. I pay 30% tax at the time of the sale. So I get $7,000 and pay $3,000 in taxes. Should I pay zakat on $10,000 or $7,000?

moinudin
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    In the hanafi madhhab taxes are acceptable according to some scholars (the government can collect them and they can be regarded as equal to zakat on wealth if they will partly be spent on social purposes) as far as I know. The question is rather when the hawl passes do you have the 10000$ or the 7000$. because Zakat has a due date and taxes don't have it specifically and this is why the majority disagrees on the matter. – Medi1Saif Feb 11 '21 at 10:03
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    Money saved used re-earned through the year the implications for zakat could be of use. – Medi1Saif Feb 12 '21 at 08:33
  • I only own $7,000 at year end. Based on that, I would think that I only pay zakaat on the $7,000. A related but different matter: I only pay zakaat the year I gain access to / sell the stocks, which is alloin Hanafi fiqh. Therefore I only pay tax in the year I sell / year I pay zakaat. Therefore I still had the full amount (including tax) in my ownership in the prior years, so I think i still owe zakaat on the full $10,000 for these prior years. Does that make sense? I'd love for you/someone to check my logic, please. – moinudin Feb 12 '21 at 23:25

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