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Zakat on deposits

Answered according to Hanafi Fiqh by DarulIftaBirmingham

Zakat on deposits

In the name of Allah, the most Beneficent, the most Merciful.

Answer

If the deposit is part of the total cost paid towards the purchase of an item or towards the rent of a property, then the depositor is not responsible for paying zakat from it. The one to whom it is deposited will be responsible to pay its zakat. The depositor no longer remains the owner of this wealth; rather, it has now come into the ownership of the one to whom it is deposited. (Aapke Masaail p.353 v.3) However, if the deposited money is given as a trust with someone else, then the person placing the goods in trust (i.e. owner) has to give zakaat on that wealth.  If he gives the entrusted person the choice to dispense his zakaat from that wealth, then it is permissible.  (Aapke Masaail p.352 v.3)

Only Allah Knows Best

Mohammed Tosir Miah

Darul Ifta Birmingham.

This answer was collected from DarulIftaBirmingham.co.uk, which is run under the supervision of Mufti Mohammed Tosir Miah from the United Kingdom.

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