Q: What elements of my pension do I need to pay zakāh on? If my pensions is a “zakātable” asset then what do I need to pay the zakāt on? The entire holding (i.e. fund value) or pay zakāt on the annual contribution? Is zakāt payable on my contribution alone or mine and my employer’s […]
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Do I have to pay zakah on my salary, if I haven’t received it?
Q: What is the ruling in relation to zakāh on my salary? For e.g. an individual who is paid his salary at the end of the month has to calculate his zakāh on the 25th of the month. Does he have to pay zakāh on the proportion of salary owed to him on the 25th […]
Read more...What is the ruling in relation to paying zakah on outstanding invoices owed to my business?
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: […]
Read more...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...Do I have to pay zakah on a loan that won’t be repaid to me?
Q: Do I have to pay zakāh on a loan that won’t be repaid to me? If a lender has lost all hope of recovering his loan how should he treat the outstanding amount for the purposes of zakāh? الجواب حامدًا و مصليًا و منه الصدق و الصواب A: If a lender has lost all […]
Read more...Please explain which descendants of the Holy Prophet Muhammad are not allowed to receive zakah?
Q: Please explain which descendants of the Holy Prophet Muhammad (s)are not allowed to receive zakāh? الجواب حامدًا و مصليًا و منه الصدق و الصواب A: It is actually not the descendants of the Holy Prophet Muhammad (s)that are prohibited from receiving Zakat but rather certain descendents of Banu Hashim of whom the Holy Prophet […]
Read more...Is a person who has an Islamic Home Purchase Plan able to deduct any future rental installments due to the bank from their zakatable assets?
Q:Is a person who has an Islamic Home Purchase Plan able to deduct any future rental installments due to the bank from their zakatable assets? الجواب حامدًا و مصليًا و منه الصدق و الصواب A: The client cannot deduct rental payments for future periods from his zakatable assets. Only those payments that have fallen due […]
Read more...What is the Shari’ah position with regards to zakah on Murabaha home purchase plans?
Q: What is the Shari’ah position with regards to zakāh on Murabaha home purchase plans? الجواب حامدًا و مصليًا و منه الصدق و الصواب A: Under the Murabahah home purchase plan the client incurs a debt for the balance of the purchase price that is payable over an extended period [typically 25 years as mentioned]. […]
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...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 […]
Read more...What is the Shari’ah position with regards to zakah on Diminishing Musharaka home purchase plans?
Q: What is the Shari’ah position with regards to zakāh on Diminishing Musharaka home purchase plans? الجواب حامدًا و مصليًا و منه الصدق و الصواب A: Under the Diminishing Musharakah home purchase plan, the client again incurs a debt only to the extent of the outstanding monthly rental payments subsequent to his use of the […]
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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