Is an Islamic Financed home a deductible in Zakat?
| Fatwa #1074 | Category: Zakaat & Sadaqah | Country: Zambia | Date: 4th April 2024 |
| Fatwa #1074 | Date: 4th April 2024 |
| Category: Zakaat & Sadaqah | |
| Country: Zambia | |
Question
Assalamualaikum sheikh.
1) is the islamic finance, used to purchase a home, which is either an ijarah contract or musharakah contract considered a debt and can be deducted as debt from zakateble assets?? Also, the title of the house is under my name.
3) if the title of the house is under the name of both husband and wife, how to calculate the debt??
- i) When the wife is not contributing in the repayments
# this also has 2 scenarios
* husband is saahibu nisaab and the wife is not
* husband is not saahibu nisaab and the wife is.
- ii) when the wife is contributing in the repayments and the husband is
Also has 2 scenarios—
* husband is saahibu nisaab and wife is not
* husband is not saahibu nisaab and wife is.
Answer
In the Name of Allah, the Most Gracious, the Most Merciful.
As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.
In the Ijarah mode of finance, one is leasing the house for a specified sum monthly, and at the end of the final leasing period, the house will either be gifted to the lessee or purchased by him. Accordingly, the only deductible debt when calculating zakat is the current months’ rent if it has become due. Rentals for future months are not deductible.
Similarly, in the Musharakah mode of finance, one is a joint owner of the house with the financier. He rents the financiers portion for a fixed sum monthly and will gradually purchase parts of the financiers share and the rental will be reduced proportionally. Accordingly, the only deductible debt when calculating zakat is the current months rent if it is due. However, if a purchase for a part of the financiers share has been signed, then that amount is now due to the financier, hence it will be a deductible when calculating zakat.
If the title is in the name of both the husband and the wife, and they both contribute to the payments monthly, then they will each calculate their zakat independently and proportionally deduct the debt from their net assets.
If the title is in both their names but only the husband is making the payments, then he will deduct the entire debt from his own zakat calculation. The wife will not deduct it from her calculation.
When making this calculation, if one ends up below the nisaab threshold, then zakat is not fardh. If one is above the nisaab threshold, zakat will be fardh.
And Allah Ta’āla Knows Best
Mufti Bilal Pandor
Concurred by
Mufti Muhammad Patel
Darul Iftaa Mahmudiyyah
Lusaka, Zambia