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Provident Fund

Answered according to Hanafi Fiqh by Darulifta-Deoband.com
I am an employee working in a PSU company of Govt. of India. Company gives option to employees to keep their provident fund (PF) money for 3 more years after retirement, if they wish. In the event an employee keeps PF money for 3 more years, does he/she shall have to give zakah on the PF amount for three years? Also, will the additional money received above the PF amount be interest?

بسم الله الرحمن الرحيم

(Fatwa: 1232/1248/B=01/1440)

 

Zakah will be wajib on PF amount only when it comes into your possession. And in case of keeping for additional three years the extra amount which you will be receiving will not be counted 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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