The ruling on zakat on mudaraba property

Question

Zayd gave Bakr money for trade on the terms that the money is Zayd’s, the labour is Bakr’s, and the profit is half and half. Now, should Zayd give the zakat on this money, or both of them half and half? And if one pays zakat on behalf of the other without his knowledge, will the zakat be discharged or not?

Answer

The original money is Zayd’s, and its zakat too is Zayd’s responsibility, not Bakr’s. If Bakr pays the zakat on the original money with Zayd’s permission, it will be discharged; without permission it will not be discharged, and compensation (daman) will be binding on Bakr. In the profit Bakr too is a partner for half; he will give the zakat on his share of the profit.

Source: Fatawa Mahmudiyya

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