I have regularly paid zakah on my savings all these years. I have recently booked an apartment with the intention of staying there. The apartment is under construction. I have signed an agreement with the builder to make payments based on progress of construction. I have already made some payment from my savings. Rest of the payment will be made from my existing savings as the construction progresses. My existing savings is not sufficient for the cost of the apartment for which I will take home loan later. The question is do I have to make zakah on my existing savings which I will pay to builder for the apartment?
بسم الله الرحمن الرحيم
(Fatwa: 1326/903/L=10/1435)
In the above mentioned case, if the current saving is equal to nisab then zakah shall be wajib on it provided the conditions of zakah are found.
Allah knows Best!
Darul Ifta,
Darul Uloom Deoband