Q: What is the ruling in relation to paying zakāh on outstanding invoices owed to my business? For e.g. if a wholesaler sells his merchandise to retailers on credit; How should the wholesaler treat the outstanding amounts on the invoices for the purposes of zakāh? الجواب حامدًا و مصليًا و منه الصدق و الصواب A: […]
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Do I have to pay zakah on a deferred loan repayment?
Q: Do I have to pay zakāh on a deferred loan repayment? What is the ruling in relation to a loan resulting from the sale of personal property with payment deferred to a later date? For e.g. an individual has purchased a new car and paid the price in full. He has sold his old […]
Read more...Are Shari’ah compliant home purchase plans considered a debt for zakah purposes?
Q: Are Shari’ah compliant home purchase plans considered a debt for zakāh purposes? الجواب حامدًا و مصليًا و منه الصدق و الصواب A: Under the Murabaha home purchase plan the client purchases the desired property on a deferred payment basis from the financier. Ownership of the property is vested in the client at the time […]
Read more...What is the Shari’ah position with regards to zakah on Ijarah home purchase plans?
Q: What is the Shari’ah position with regards to zakāh on Ijarah home purchase plans? الجواب حامدًا و مصليًا و منه الصدق و الصواب A: Under the Ijarah home purchase plan the client incurs a debt only to the extent of the outstanding monthly rental payments subsequent to his use of the property. This debt […]
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