Zakat on merchandise

Question

If someone has trade goods worth one hundred rupees, is it wajib to give two and a half rupees in zakat, or two and a half tolas (a unit of weight, ≈ 11.66 g) of silver?

Answer

He may give two and a half rupees, or silver and the like of that value; giving one-fortieth of the trade goods themselves is also correct. However, if he has only merchandise worth one hundred rupees and has no cash, silver or gold at all, then zakat is not wajib on him in the first place.

Source: Fatawa Mahmudiyya

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