Zakat on animals held for trade

Question

A person bought male goats, camels, horses, etc. for trade. These animals are sold several times in the course of a year, and are also bought again. How, then, is the zakat on them to be paid?

Answer

Their value should be assessed, and one-fortieth of it paid at the end of the year; then, as one wishes, either the value itself may be given, or an animal of that value may be given.

Source: Fatawa Mahmudiyya

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