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Zakat on alloted flat

Answered according to Hanafi Fiqh by Darulifta-Deoband.com
I have been allocated a flat from the government. My first intention was that I would keep the flat for myself (which I may stay or rent). But as my financial condition is not good I can pay only two installments from my own fund. For the rest 6 installments I have to take loan from my bother-in-law who will ask for some profit from his loan. The question is that will I have to pay zakah for my first 2 installments that I will pay from my own fund and do I have to pay zakah for the loan money I will take from my brother-in-law. If I do not have the ability to keep the flat then I may have to sell it. What will be the zakah fatwa then?

بسم الله الرحمن الرحيم

(Fatwa: 772/772/M=1434)

In the question mentioned above, as you are taking the flat for your residence or to give on rent hence zakah shall not be wajib on the value of this flat. However, the payment of first two instalments which you would make from your fund if you mean by this fund the fund which you have or the money which you have saved from your own choice and it is equal to nisab and whole year has passed on it then it is wajib to pay its zakah. But if you paid the instalment before the year was over then the wujub of zakah was dropped. The loan which you would take from your bahnoi its zakah shall not be wajib on you. Also it is haram and unlawful to take interest based loan. The benefit which your bahnoi will receive from the debt will be termed as interest.

Allah knows Best!

Darul Ifta,
Darul Uloom Deoband

This answer was collected from the official ifta website of Darul Uloom Deoband in India.

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