Q: Is Zakat paid on a local initiative where money is collected to be distributed to needy local individuals? Two brothers run a small initiative, whereby people give monthly donations (usually £10) which goes into a separate account for that specific purpose/initiative. This money is then distributed to local people (by the 2 brothers) who are […]
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Who is liable to pay the Zakat for a limited company?
Q: Is a limited company an independent entity in Islam and therefore liable for its own Zakat or does its value belong to the shareholders? الجواب حامدا ومصليا ومسلما ومنه الصدق والصواب A: The liability to pay zakat falls on the shareholders and not the company itself. If taxes have been incurred on the zakat […]
Read more...Is it permissible to give to charities who fund military arms or tobacco investments?
Q: Is it permissible to give charity to organisations if one knows they are funding military arms and tobacco investment? الجواب حامدا ومصليا ومسلما ومنه الصدق والصواب A: Military armaments can be both permissible and impermissible depending on the situation at hand. In fact, they can even be an obligation such as when needed for […]
Read more...Is one regarded as sinful for delaying the paying of zakat to such an extent that a year passes?
Q: My zakat is calculated yearly on 16th Sha’ban. This year for example, it was £500. My habit is to split the £500 into 11 monthly payments. My aim is to pay the zakat £500 before the next years Sha’ban. However, sometimes I budget and maybe miss a few months. Thus for example by 16th […]
Read more...What should a charity do with interest (riba), and income generated from interest, that it receives?
Q: What should a charity do with interest (riba), and income generated from interest, that it receives? Our charity receives Haram Interest from individuals & business. Whilst that is sitting in the charity’s Islamic bank accounts what is the status of the (halal) return generated? Does it have the same restrictions as the Interest capital? […]
Read more...Is the responsibility of Zakāt a strictly individual responsibility or can it be joint say in the case of husbands and wives?
Q: Is the responsibility of Zakāt a strictly individual responsibility or can it be joint say in the case of husbands and wives? Most spouses would have joint finances and liabilities or would treat theirs as such. الجواب حامدا ومصليا ومسلما ومنه الصدق والصواب A: Zakāt is strictly a personal obligation. Even in jointly […]
Read more...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 […]
Read more...Can Zakat ul Fitr only be distributed in the form of food?
Q: Is it permissible for Zakat ul Fitr to be given in the form of cash or new clothes, or must it be spent on food? الجواب حامدا ومصليا ومنه الصدق والصواب A: Zakatul Fitr can be given in the form of cash or new clothes and does not have to be spent on food. […]
Read more...Is it permissible to take a business loan which requires payment of an insurance premium?
Hawkesbay Investment Corporation Limited The business is in conformity with standards and in line with normal corporate ethics. Based on the loans agreement drafted by our client and we guarantee that our client will only enter into a legitimate business transaction as proposed with the funds. Legal & General Insurance company hereby guarantee the safety […]
Read more...Can someone stuck in a ribā-based loan give voluntary charity, or do they need to pay off the ribā-based loan first?
Q: Can someone stuck in a riba-based loan give voluntary charity, or do they need to pay off the riba-based loan first, given that is a duty, and thereafter resume with giving voluntary charitable donations? الجواب حامدا ومصليا ومسلما ومنه الصدق والصواب A: One who has taken a haram loan or a conventional mortgage should […]
Read more...Is it permissible to give Sadaqah from your child benefit money or is the permission of the child required?
Q: Is it permissible to give Sadaqah from your child benefit money or is the permission of the child required? الجواب حامدا ومصليا ومسلما ومنه الصدق والصواب A: Child benefit is a payment to and the property of the parent with parental responsibility. Whilst it is intended and indeed expected that the parent will use the […]
Read more...Can I pay Zakat on my mothers behalf even though I have a student loan to repay? Will it be considered a Sadaqah for me?
Q: Can I pay Zakat on my mothers behalf even though I have a student loan to repay? Will it be considered a Sadaqah? الجواب حامدا ومصليا ومسلما ومنه الصدق والصواب A: You can pay your mother’s Zakat on her behalf with her permission. This will be considered a Sadaqah for you. Repayment of debt is a […]
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