Zakat

Zakaat on Retirement Annuity, Jewellery, Shares

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Q: Is zakaah payable on retirement annuity/provident fund/preservation fund? And investment property that is still bonded? And what if you have excess cash in bond? Shares? And what about zakaat on rental but property is bonded? Also must zakaah be paid on jewellery? Shafi mathab please.

A:
There is no zakaat on a Retirement Annuity that is held and funded by the company one works for. One day when you receive the cash from the Retirement Fund and it remains in your possession for one Islamic year, zakaat for that year will then become compulsory.

The excess cash in the bond is yours, it is there for safe keeping, so Zakaat will be paid on it, but if you had intended that as a payment, never to be taken out then it is not yours so no  Zakaat.

Rental is cash in your hands so Zakaat will be paid on it, irrespective of whether the property is still bonded.

Zakaah is compulsory on gold and silver in whatever form, e.g. in the form of coins, jewellery, etc. That jewellery which being used or at least one intends using it will not be liable for Zakaah. If one does not intend using it then Zakaat will be compulsory on it.

Moulana Yusuf Laher

Zakaat on Gifts

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Q: One of my friends collected property in cash and jewellery. When I asked her to pay zakat she said this is for my children. I said they are minor. She said I distributed it between them verbally. So the minimum amount one person is carrying is not going beyond the zakat due. Therefore no zakat applies. I don't understand whether she is doing right or wrong. Please guide us

A:
If she made the children the owners of those things then Zakaat will not be paid on it. If she merely made an intention to give it to them but it is still in her possession and is above the Nisaab of zakaat the zakaat will be Fardh on her.

Moulana Yusuf Laher

Paying Debt with Zakaat

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Q: If a person has debt and he cannot afford to pay it would it be permissible for a third person to pay the debt amount with zakaat to the debtor without the permission of the person?

Note: the person has agreed to pay the debt in installments over a period of 2 years. However the debt amount is such that it is required to be paid once off.

A:
The third person will either give him the money or pay it with his permission and consent. If he pays it without permission the Zakaat will not be discharged.

Moulana Yusuf Laher

Minor Paying Zakaat

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Q: Can a minor pay zakat?

A:
In the Hanafi Madhab, Zakaat is not compulsory on a minor.

Moulana Yusuf Laher

Zakaat on Deceased Estate

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Q: My step sister died in 2004 and had a cash balance at bank of £365,000.00 plus interest accrued of £40,000 making a total of £405,000. This estate was divided between 17 family members without considering that no Zakaat had ever been paid since 2004. My views are that zakaat should have been deducted and distributed and interest given away before the division.

A:
Even if Zakaat was compulsory on your sister and she did not pay it, it will not be paid from the estate unless she instructed that it be done from the estate. (Raddul Muhtaar V29 P360).

Yes, the interest must be removed.

Moulana Yusuf Laher

Zakaat to Domestic Worker

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Q: Is it permissible to give zakat to a non Muslim domestic helper?

A:
It is not permissible to give Zakaat to non Muslims. It has to be given to a Muslim who qualifies to accept Zakaat.

Moulana Yusuf Laher

Zakaat on Deposit

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Q: I have already put in a deposit for a house and will be paying the remainder of the down payment in August.  Do I have to pay Zakah on these funds?

A:
You will not pay Zakaat on the deposit because that has already been paid in.

If the remainder is still with you on the due date of fulfilling your Zakaat and it is more than the Nisaab of Zakaat (with your other Zakaatable assets) then Zakaat will be paid on it.

Moulana Yusuf Laher

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