I purchased a vehicle on a residual or lease option. I will return the car at the end of the lease term (4 more years). My current lease installment is R2800. For zakaat purposes should I deduct the entire lease liability or only the installments due within 12 months?
In the name of Allah, Most Gracious, Most Merciful
Assalaamu `alaykum waRahmatullahi Wabarakatoh
You have mentioned in the query that you will have to return the car to the bank at the end of the lease period. Therefore, it will be as if though the bank is hiring the car to you. In this case, the amount due on you will not be regarded as a liability, but a mere rent that you are paying every month (or however the scheme demands). Now, when the amount will not be regarded as a liability, it will not be permissible to deduct any amount when calculating the zakaat.
And Allah knows best
Wassalam
Ml. Abu Yahya
Student Darul Iftaa
Concurred by:
Ml. Ehzaz Ajmeri,
Student Darul Iftaa
Darul Iftaa, Madrassah In’aamiyyah