Fatwa ID: 07041

Answered by: Mufti Mohammed Dilwar Hussain

Question:

Those individuals who finance their homes based on diminishing partnership models, can they deduct monthly payments from their Zakatable assets?

In the name of Allāh, the Most Gracious, the Most Merciful

Answer:

Allāh Ta’ālā has ordained on us: “Be steadfast in Salāh (prayer), and pay Zakāh, and bow down with those who bow down (in worship and obedience)”. [Surah al-Baqarah; 2:43] [1]

Zakat is not like taxes whereby it must be paid on all earnings. Zakat is only due on one’s savings. Thus, you would be able to deduct your immediate expenses before calculating your total payable Zakat.

For the home, you may deduct a maximum of one years repayment amount from your Zakat-able assets.

Only Allāh Ta’ālā knows best.

Written by Mufti Mohammed Dilwar Hussain

Checked and approved by Mufti Mohammed Tosir Miah

Darul Ifta Birmingham

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