Paying Zakat in Installments?

Question
As one year completed on my savings I had to pay Zakat on it but I didn’t have enough money to pay so I paid 1/3, and say as I get more money I will pay later. Before few days I had money so I put out remained Zakat which I had to pay, but here I didn’t find any one to give Zakat. I keep that money separate but I didn’t give to any one, now after few days I have had more savings so kindly tell me should I give Zakat on that new sabings or give when one year will have been passed?

Answer
All perfect praise be to Allah, The Lord of the Worlds. I testify that there is none worthy of worship except Allah, and that Muhammad is His slave and Messenger, may Allah exalt his mention as well as that of his family and all his companions.

Every savings that reaches the minimum amount liable for Zakat, which is 85 grams of gold, and if a whole lunar year elapses on it. In this case Zakat has to be paid on it immediately and it should not be delayed, except for a short period if one does not find a poor person to give it out to, or due to waiting for the return of a relative to give it to him and the like.

Ibn Qudamah, may Allah have mercy on him, said: ‘If one delays paying the Zakat in order to give it to a relative who deserves it, or someone who is very much in need for it, it is permissible to wait for a short period, but it would not be permissible if one has to wait for a long period.”

As regards delaying the payment of Zakat on this savings because of the lack of cash money, then this is not a sound excuse, but it is an obligation to give a portion of this money to the people who are eligible for Zakat.

Allah knows best.

Source: https://www.islamweb.net/emainpage/PrintFatwa.php?lang=E&Id=89551


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Neither Husband nor Wife Has to Pay Zakat Due on The Other

Source: https://www.islamweb.net/emainpage/PrintFatwa.php?lang=E&Id=102345

Question:
Assalaamualaikum, a sister from our forums is asking the following question. We hope that you will be to answer it: “If a person owns a small amount of jewelry (a couple hundred dollars worth), and the same person has thousands of dollars of debt (owed from before accepting Islam), and the person doesn’t have any wealth that has been sitting for 1 year, so, does the person have to pay zakat for the jewelry or not since he/she is drowning in debts?

Another question, If that person is married, but the debts are only under one person’s name (accrued by one of them only), but both feel responsible to pay it back, then does the other spouse need to pay zakat for his/her wealth/assets? I guess really my question is, Are the finances considered combined or separate for the purposes of calculating Zakat?” Jazak Allah khair

Answer:
All perfect praise be to Allah, The Lord of the Worlds. I testify that there is none worthy of worship except Allah and that Muhammad, sallallaahu ‘alayhi wa sallam, is His slave and Messenger.

You did not clarify to us whether this gold is possessed for saving and trading, or for use as an adornment.

The predominant opinion is that of the majority of the scholars, may Allah have mercy upon them, who believe that there is no Zakat on gold if it is used for adornment. However, some of them believe that Zakat must be paid on it if it reaches the Nisab (i.e. the minimum amount liable for Zakat, equal value to 85 grams of gold or 195 grams of silver) and a whole lunar year elapses on it.

For more info, please refer to Fatwa no. 87362.

According to the view that Zakat must be paid on this gold, the majority of the scholars, may Allah have mercy upon them, are of the view that if one has debts he is not obliged to pay Zakat on items like gold, silver or cash money unless the debtor has other wealth on which one should pay Zakat, and is enough to cover the amount of debt. In this case, he must first pay the debt and then pay Zakat on the remaining money if it reaches the Nisaab.

Therefore, if the question is about a woman’s adornment, then according to the view that Zakat must be paid on the gold that is used as an adornment or saved for use, then she must pay her debts from the gold which she possesses. After this, if nothing remains of it, or what remains of it is less than the Nisab, she is not required to pay Zakat.

However, it cannot be imagined that the gold that a man possesses is for adornment and use, as he is religiously prohibited from wearing it. Hence, if the owner of this gold is a man, then he should repay his debts (from the gold) and then pay the Zakat on the remaining gold in any case if it reaches the Nisab since he possesses that gold.

Zakat must also be paid on the gold that is saved or used in trade (after paying the debts and provided it reaches the Nisab), whether the owner is a man or a woman.

For more info on the Zakat of an indebted person, please refer to Fataawa no. 82490 and no. 87557.

A husband is not obliged to pay the Zakat which is due to his wife; likewise, a wife is not obliged to pay the Zakat which is due to her husband. Moreover, the spouses are not obliged to add together the money that they possess in order to calculate the amount of Zakat due. Rather, each one of them is required to pay Zakat on his own money if it fulfills the conditions of Zakat. Each one of them has a separate monetary entity.

Allah Knows best.


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Does Asnaf Need to Pay Zakat?

Source: https://www.islamweb.net/en/fatwa/118692/

Question
I am a poor, penniless man and the father of two disabled children. Righteous people gave me from the wealth of Allah such as Zakat and charity. Now, I own a Nisab on which one full lunar year (haul) has lapsed. Is Zakat due on me?

Answer
All perfect praise be to Allah, The Lord of the worlds. I testify that there is none worthy of worship except Allah, and that Muhammad, sallallaahu ‘alayhi wa sallam, is His slave and messenger.

The majority of scholars hold that Zakat is due on wealth. The condition by which Zakat becomes due is to own a Nisab on which one lunar year (haul) has passed. Therefore, whenever a Muslim owns a Nisab of a kind of wealth on which one full lunar year lapses, Zakat becomes due on him whether he is rich or poor. Hanafi jurists, however, excluded the wealth that is saved for one’s basic needs such as food, drink, clothes and so on as they said: “No Zakah is due on it”.

The majority of scholars hold a different view from that of the Hanafi scholars as they hold that whoever owns a Nisab is required to pay Zakat on it even if he is poor. They also say that being entitled to receive Zakat does not prevent it from being due on a person. They set a difference between the limit of wealth that makes Zakat due and that which prevents one from taking it.

According to Malik, Ash-Shafi‘i, and Ahmad (may Allah have mercy upon them), the limit of wealth that makes Zakat due on someone is owning the Nisab. In relation to this, Ibn Qudaamah (may Allaah have mercy upon him) said: “The fourth condition: Richness, based on the statement of the Prophet, sallallaahu ‘alayhi wa sallam, to Mu‘aath ibn Jabal may Allaah be pleased with him, ‘Inform them that they have to pay an obligatory charity that is taken from their rich to be given to their poor.’ [Al-Bukhari and Muslim]. This is also because Zakat is obligatory so as to be a source of assistance to the poor. Hence, there should be a considerable limit of wealth so as to achieve such assistance. The considerable limit of wealth in such a condition is to own a Nisab that is free from debt.”

The limit of wealth that prevents one from taking Zakat is owning what is sufficient for fulfilling one’s needs, whether it has reached the Nisab or not. Al-Khattaabi (may Allaah have mercy upon him) said about this, “Malik and Ash-Shafi‘i said: “There is no specified limit for wealth, but what counts is the financial capability of a person. So, if a person owns what suffices his needs, it is unlawful for him to take charity and, if he becomes in need, then it is lawful for him to take it.” Ash-Shafi‘i said: “A man who can earn his living may be rich by having only one dirham while another, who is too weak to earn his living and has many dependents to provide for, maybe poor despite having 1000 dirhams.”

On the other hand, Hanafi scholars hold that the same criterion should apply in both cases. This means that one who owns the Nisab is not permitted to receive Zakat because, by owning it, he is considered rich. However, the preponderant opinion is held by the majority of scholars. Therefore, you should know that you have to pay Zakat on your money as long as it has reached a Nisab and a full lunar year has lapsed on it. This also does not cancel the permissibility of taking from the Zakat money if you are entitled to receive it under the Shari‘ah.

Allah Knows best.


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Zakat on Debit Card Deposit?

Source: https://www.islamweb.net/emainpage/PrintFatwa.php?lang=E&Id=333268

Question:
Assalaamu alaykum wa rahmatullaah. I would like to ask regarding paying zakat on the money that a person has deposited from his own money in an Islamic bank in order use to use their covered card service. For example, the bank, before offering the covered card (debit card), requires from the client to give them 10,000 in cash, and they will keep it with them in a separate account (separate from the savings or current account) in order to grant the person the covered card. Upon the 10,000 cash given to the bank, they will set the maximum card limit to 7,500 that can be used. The bank said that this is sharia complaint as the person is using his own money that he has deposited and the bank then deducts the owed money from the person’s main bank account. The 10,000 cannot be withdrawn by the person unless he cancels the covered card program and hands them back the card. However, he can withdraw 7,500 from that card, which the bank will deduct 100% from the person’s main bank account. I would like to ask: does the person have to pay zakat on that money even though it is not in his full possession? If yes, then how should he calculate it? And would he have to pay for the past years, during which he did not know that he had to pay the zakat on such financial agreements? May Allaah reward you.

Answer:
All perfect praise be to Allah, The Lord of the worlds. I testify that there is none worthy of worship except Allah and that Muhammad, sallallahu ‘alayhi wa sallam, is His slave and Messenger.

You must pay zakat on those ten thousand if they reach the Nisaab (minimum amount liable for zakat which is equal to 85 grams of gold or 595 grams of silver) by themselves or in addition to other money or gold or silver or tradable items. The amount of zakat is 2.5%.

If you have not paid zakat on it the previous years, then you should do so now, because zakat is not waived by the fact that its time has passed. Also, the fact that the amount is mortgaged with the bank does not prevent one from the obligation of paying it. Zakat must be paid on the money that is subject to zakat, even if such money is mortgaged. So you should pay zakat on the mortgaged money as long as you have other money to pay from.

Ibn Qudaamah, may Allah have mercy upon him, said, “If a person mortgages cattle and a whole lunar year elapses while it is in the hands of a mortgagee, then it is obligatory on the person who mortgaged the cattle to pay the zakat as he is the complete owner, so if he can pay the zakat from other things, then it is an obligation.”

Also, Ibn Hazm said in Al-Muhalla, “If a person mortgages cattle, gold, silver, land that he cultivated, or palm trees that yielded fruit, and a whole lunar year elapses, then zakat must be paid on all this … because it is property that resulted from his property, and the obligatory zakat is a must on it as long as his property is not transferred to someone else [i.e. as long as he is still its owner].

An-Nawawi said, “If a person mortgages cattle or other zakat funds and a whole lunar year elapses, then there are two views for this: the adopted view – which is the view authoritatively asserted by the majority of the scholars – is that zakat must be paid on it because of fully owning the property. It was also said that there is a difference of opinion regarding it, like that regarding the usurped property, as the person (in this case) is not able to dispose of his property.”

Allah knows best.


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Payment of Zakat in Favour of The Islamic Solidarity Fund and Its Waqf.

Bismillah Ar-Rahman Arrahim

Praise be to Allah, the Lord of the Universe, and prayers and blessings be upon Muhammad, the last of the Prophets, upon his Family and his Companions.

RESOLUTION NO 27 (2/4): CONCERNING PAYMENT OF ZAKAT IN FAVOUR OF THE ISLAMIC SOLIDARITY FUND AND ITS WAQF

The Council of the Islamic Fiqh Academy, holding its Fourth session, in Jeddah, (Kingdom of Saudi Arabia), from 18 to 23 Jumada Thani 1408 H (February, 6 to 11, 1988).

Having considered the explanatory note on “payment of Zakat in favor of the Islamic Solidarity Fund and its Waqf ” submitted to the Academy, and the research papers forwarded to the Academy at this session on this subject.

RESOLVES

First: Zakat funds may not be remitted to the Waqf of the Islamic Solidarity Fund (ISF) because this would lead to barring of Zakat funds from its legitimate beneficiaries defined in the Holy Book.

Second: The Islamic Solidarity Fund (ISF) may act as an agent for individuals and institutions in channeling Zakat to its legitimate beneficiaries under the following conditions :

  1. The rules of Shari’a for such an agency should apply to both principal and agent.
  2. The ISF should amend its statutes and objectives so as to be qualified to undertake operations of this nature.
  3. The ISF should set up a special account to handle funds received as Zakat, so that they may not be mixed with other contributions received for purposes other than Zakat

Zakat funds shall not be utilized for covering administrative expenses such as wages, salaries or other expenditures that are not among approved Zakat expenses.

  1. The payer of Zakat shall be entitled to choose the beneficiary among the eight recognized channels of Zakat and the ISF —in such case- must comply with his wish.
  2. The ISF shall disburse such Zakat funds to the beneficiary as speedily as possible, within a maximum period of one year, so that beneficiaries may utilize their shares.

THE COUNCIL

Eager to enable the Islamic Solidarity Fund (ISF) to fulfill its charitable aims (as stipulated in its statutes) and for which it was established ;

Committed to the resolution of the 2nd Islamic Summit Conference, which created the ISF and set the mechanism of its financing through contributions from the Member States;

Considering the sporadic remittances of voluntary contributions by some states ;

URGES Muslim countries, Governments, institutions and prosperous individuals to perform their duty and consolidate the resources of the ISF so that it may fulfill its noble objectives in the service of the Islamic Ummah.

Verily, Allah is All-Knowing

Investment of Zakat Funds in Profit Generating Projects Without Attributing Individual Property Title to The Beneficiary.

Bismillah Arrahman Arrahim

Praise be to Allah, the Lord of the Universe, and Prayers and Blessings be upon Sayyidina Muhammad, the last of the Prophets, and upon his Family and his Companions

RESOLUTION NO 15 (3-3)

CONCERNING INVESTMENT OF ZAKAT FUNDS IN PROFIT GENERATING PROJECTS WITHOUT ATTRIBUTING INDIVIDUAL PROPERTY TITLE TO THE BENEFICIARY

The Council of the Islamic Fiqh Academy, holding its third session, in Amman, Hashemite Kingdom of Jordan, from to 13 Safar 1407 H (11 to 16 October 1986),

After reviewing the studies made on the issue of “Investment of Zakat funds in Profit generating projects without disbursing it to the individual beneficiary

After listening to the opinions of the members and experts on this subject;

RESOLVES

It is permissible, in principle, to put Zakat funds in investment projects which eventually lead to be owned by those who are deserving of Zakat, or which are under the control and administration of the entity which is responsible and has the jurisdiction over collecting and distributing Zakat, provided that it is done after satisfying the basic and immediate needs of the beneficiaries and with proper guarantees against loss.

Verily, Allah is All-Knowing 

Zakat on Debts

Issued by: International Islamic Fiqh Academy – مجمع الفقه الإسلامي  712

RESOLUTION No 1 (1/2)

CONCERNING ZAKAT ON DEBTS

The Council of the Islamic Fiqh Academy, during its second session, held in Jeddah (Kingdom of Saudi Arabia), from 10 to 16 Rabiul Thani 1406 H (22-28 December 1985);

Having looked into the studies presented about << Zakat on debts >>, and
After thorough discussions which covered the subject from its different aspects, it became evident that :

  1. There is no statement in the Book of Allah, Almighty, or the Sunnah of His Messenger (PBUH), elaborating (rules of) Zakat on Debts. ;
  2. Numerous views have been reported from the Companions and the Tabe’een (the generation after the Companions) –May Allah be satisfied with them- from the viewpoint of the method of paying Zakat on debts.
  3. Accordingly, the Islamic Schools of Jurisprudence have differed clearly on the subject.

4. The difference of opinion (regarding this subject) is, in turn, caused by their differing opinion regarding the (following) fundamental principle: whether receivable assets can be classified as actually received assets.

The Council RESOLVES THE FOLLOWING:

1. The lender is obligated to pay Zakat, every year, on his loaned money, if the borrower is solvent.

2. The lender is obligated to pay Zakat after the elapse of one year starting from the day he actually receives his loaned money if the borrower is impoverished or controverting.

Verily, Allah is all-knowing 

Zakat on Pension Fund Withdrawal?

Question:

How do I calculate my pension fund withdrawal? Should I calculate 2.5% on my withdrawal amount or should I work out the zakaah on each year going back. What is the permissibility of the growth on the contributions?

Answer:

Since the pension in reference is mandatory and you do not have any control over the investments, then the income you receive from this plan will be halal for you to take. The final amount you receive will be counted as part of your salary including all extra amounts you receive upon leaving the company.

With regards to Zakāt on mandatory pension funds, you are neither obligated to pay Zakāt for the previous years nor upon receiving the money. There is no separate Zakāt for monies invested in a mandatory pension fund. At the end of your Zakāt year, the pension amount that you have withdrawn should be added to your assets and Zakāt should be calculated in accordance with that.


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How to Calculate the Zakat While Paying an Installment Debt?

Someone got into a housing debt and have gold more than 85 grams. How shall he calculate zakat?

The answer:

He would have to give zakat only if the amount that remains after subtract the ‘total installment for a year’ from total wealth is more than the amount of nisab (85 grams of gold, or 595 grams of silver, or equal amount of money or commodities), and if he still have been holding that wealth for one lunar year. It is important that his total installment debt for a year, rather than the whole debt amount is subtracted from his wealth. Here is why:

It is a fact that debt is subtracted from wealth when total wealth and its zakat are calculated. Being paid in installments or at once does not change the fact that it is a “debt”. In the Qur’an, in the specific verse about the sharing of inheritance (an-Nisa 4:11), the wealth of the deceased and the shares of heirs are calculated after all of his debts are subtracted from his wealth. Considering this, you will need to pay zakat for every year (every haul), does, only the installment for that year is allowed to subtract because it is considered as needed in that year.

For this reasons, the total installment debt for a year must be subtracted from the wealth in order to calculate the zakat; thus zakat is 2.5% from that remaining balance.


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