Can student loans be taken off as a liability for zakah purposes?

Q: Can student loans be taken off as a liability for zakāh purposes?  Is a Student Loan added to ones zakāh liability section as a whole in every zakāh year until it is paid off unlike most deferred payment loans such as mortgages, where only the coming 12 months instalments will be added in the […]

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Is it permissible to give Zakāt al Maal to a charity if it operates abroad?

Q: Is it permissible to give zakāt al maal to a charity even if it operates in other countries?   الجواب حامدا ومصليا ومسلما ومنه الصدق والصواب   A: All things being equal one should distribute one’s zakat in the immediate locality of the zakātable wealth.  Failure to do so is reprehensible but not prohibited.  However, if […]

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Do I have to pay zakah on Qard Hasana given to an individual?

Q: If an individual lends £2,000 to his relative on the basis of qarḍ ḥasana (gratuitous loan) and the £2,000 is still outstanding. How should the lender treat the outstanding £2,000 for the purposes of zakāh? الجواب حامدًا و مصليًا و منه الصدق و الصواب A: A personal loan is categorized as a ‘strong debt’.[1] […]

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What is the distinguishing difference between a trust and waqf?

Q: What is the distinguishing difference between a trust and waqf? الجواب حامدا ومصليا ومسلما ومنه الصدق والصواب A: The fundamental difference between the forms of trusts discussed in the document on trusts and a valid waqf is that in the latter property is taken out of one’s ownership and passed in to the ownership […]

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Do I still have to pay zakah on my frozen pension fund?

Q: Do I still have to pay zakāh on my frozen pension fund? I have a pension which is now frozen where I have selected the funds. The pension is invested in shares. Both myself and my employer had contributed to the pension. The pension has made a profit. Can you please confirm the following: […]

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Do I have to pay zakah on shares held for me by a nominee?

Q: Do I have to pay zakāh on shares held for me by a nominee on trust? For e.g. I purchase shares in my own name via TD Waterhouse who hold legal title on a nominee basis. This means they are shown on the company register as the legal owners of the shares. However they […]

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Is zakah payable on the value of on account payments for a person who has an Islamic Home Purchase Plans?

Q: Is zakāh payable on the value of on account payments for a person who has an Islamic Home Purchase Plans? الجواب حامدًا و مصليًا و منه الصدق و الصواب A: Ownership of the on account payments, both under the Ijarah home purchase plan and the Diminishing Musharakah home purchase plan, remains vested in the […]

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Is zakat payable on rental income as well as on the share of property that is owned?

Q: 1 Can you please confirm that zakat is payable on rental income as well as the share of property that is owned. For example, if the annual rental income is £15,000 and the annual mortgage payment is £12,000, is zakat due on the difference (£3000 in this example) if the person hasn’t spent any money from rental […]

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If I own land in a foreign country on which a house is currently being built which will be rented out, is there any Zakat to be paid currently?

Q: If I own land in a foreign country on which a house is currently being built which will be rented out, is there any Zakat to be paid currently? الجواب حامدا ومصليا ومسلما ومنه الصدق والصواب A: There is no Zakat payable on the land.

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Is it necessary for Zakat to be allocated and spent within 1 year of receiving the donation?

Q: What is the time-period for dispensing Zakat? Is it necessary for Zakat to be allocated and spent within 1 year of receiving the donation? الجواب حامدا ومصليا ومسلما ومنه الصدق والصواب A: Zakat should be distributed as soon as possible.  If there are procedural delays in the PROPER discharge of zakat which includes proprietary […]

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For zakat purposes, how might we interpret ‘fi sabeelillah’ in the modern context?

Q: How might we interpret fi sabeelillah in the modern context? Could this include campaigning or advocacy activities – for example, raising awareness about Islamic teachings on poverty issues, dispelling misperceptions about Islam, speaking out on international justice issues etc. الجواب حامدا ومصليا ومسلما ومنه الصدق والصواب A: Whilst the literal meaning of fi sabilillah […]

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