Is It Zakatable?: Earnings Made from Non-Shari'ah Compliant Stocks

Everyday Islamic Finance Personal and Family Finance
#1

Salam! I recently came into possession of a portfolio that had some non-compliant assets. I sold them and was able to determine the principle investment amount as well as the earnings. I was told that these earnings were to be given to zakat-eligible recipients (please confirm if this is correct or not).

My specific question is this: say I am obliged to give these earnings from haram assets away, but have not done so yet. Can I deduct that amount from my zakat calculations? Or do I include it? If it was zakatable, it would only increase the zakat payment by 150 USD, so it is not particularly worrying. I am asking for general understanding for the future.

Please let me know if the question needs clarificaiton.

Best, fi aman ALlah,

#2

Wa alaykum salaam,

How did you come into possession of this portfolio?

Was it gifted to you? Did you purchase these shares?

#3

Thank you for responding Mufti Faraz.

I was gifted them. I sold them as soon as I had access to the account.

#4

Wa alaykum salaam,

In that instance, it is not permitted to keep anything from that sale.

#5

Ok, so the whole value of those assets is to be given away, not just the profit, correct?

Moreover, how does this relate to the question on zakat? Do I include these haram earnings in the calculations?