Fatwa ID: 08267

Answered by: Mawlana Abdurrahman Mohammad

Question:

I need to ask a question about my zakat. I have a mortgage and I know the way to deal with long term debt with zakat is to deduct 12 months worth of re-payments from the total figure of assets and if the result reaches the nisab value, then Zakat is due for the year.

My question is, when I deduct the 12 months of repayments, do I deduct the full monthly payment (which includes capital repayments and interest,) or do I deduct only what is to be paid back as a capital repayment for the 12 months? Does the interest factor into deductions when determining if I am eligible for Zakat?

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

Answer:

Islam does not consider interest as part of the loan and it would not be deducted from the Zakat amount. The word Ribā in the Arabic language means “to increase” or “excess” so interest is something separate or in addition to the loan, not part of it. Based on the principle that “Whatever is impermissible to take is impermissible to give,” just as it is impermissible to take interest, it is impermissible to give it. Since it is impermissible to give interest, it would not be factored into your Zakāt calculations.

Only Allah (عَزَّ وَ جَلَّ) knows best.

Written by Mawlana Abdurrahman Mohammad

Checked and approved by Mufti Mohammed Tosir Miah

Darul Ifta Birmingham

References:

ما حرم أخذه حرم إعطاؤه

(Al-Qawā’id Al-Fiqhiyyah Ma’a Al-Sharh Al-Mūjaz, pg. 78, Dar At-Tirmidhi)