Question:
Is zakāt taken from profit or capital and how much is its percentage?
Answer:
Zakāt is (taken) from total wealth; the capital and the profit – from what is present, not from what has been consumed, spent or has now gone – no.
For example; a person set up a business at the start of Ramadhān. No doubt that throughout the year he will spend. Perhaps he will buy a house, buy a car, buy items for the home, furniture, eat and drink, clothe himself etc.
So when the next Ramadhān comes he takes stock of what is with him; the capital invested into the business and the profit; this is what he takes stock of and deducts his zakāt from.
The percentage of zakāt is 2.5%. So he divides his total wealth by 40 and the answer is the zakāt.
(If) for example, he purchases for himself, from his businesses profits a car which he uses for domestic errands and work; does it enter into the zakāt? no.
(If) he buys for himself an electrical appliance, does it enter into the zakāt? no. He buys for himself a house, does it enter into the zakāt? no. He buys for himself clothes, food and furniture, does it enter into the zakāt? no.
Not unless it is known (to be used) for business purposes.
(If) he has land he put up for sale (or) he has a house he put up for sale; this enters into zakāt.
Answered by: Shaikh Abu Abdillah Muhammad Ba Jamaal (May Allah preserve him)
Source: https://t.me/bajmaal/4496
Translated by: Abū Sufyān Sāmi ibn Daniel Al-Ghāni