Do Bonds and Treasury Bills Require Zakat Payment?

Yes, Zakat is required on bonds and treasury bills, but only on the principal amount (initial purchase cost). 

The interest earned from these investments is not permissible and should be given to charity without seeking any reward.

Here are the key points that depict the status of treasury bills and bonds to Zakat:

• Shariah Compliance: Bonds and treasury bills generate interest, which is not allowed in Islam.
• Zakat on Principal: The original cost of the bond is subject to Zakat at the standard rate of 2.5%.
• Interest Earnings: Any interest received must be donated to charity, as it is not lawful income.
• Ethical Investments: It is advisable to invest in Shariah-compliant alternatives like Sukuk (Islamic bonds) or halal stocks.

And Allah knows best!