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 is then settled on a monthly basis by virtue of the rental payments.
However, if the client’s zakāh date arrives before such debt has been settled, it will be deductible from his zakatable assets. Funds that have built up as a consequence of the on account payments are not subject to zakāh.
For a detailed breakdown, please see the Zakāh on Islamic Home Purchase Plans research paper on the Al Qalam website.