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How is the zakat calculated for money given to a relative for the purpose of trade, and is it obligatory to pay the zakat in cash, or is it permissible to pay it from the same type of trade?

1 min readAlso available in العربية

Scholars have differed regarding the disbursement of zakat on trade goods, whether it should be from the goods themselves or in cash. Some have held the view that it is permissible to disburse it from the goods themselves because zakat is a consolation for the poor, and because the nisab is determined by value. Some scholars have authenticated this opinion, citing as evidence that zakat is a consolation from the wealthy to the poor, so it is permissible to console them with fabric from fabric. Based on this, it is permissible to disburse zakat from the trade goods themselves according to many scholars.

Summarized from the full answer at Ftawy · reviewed Sep 2, 2026

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