What is collected in savings boxes: is it subject to zakah?
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Q: Lately, the formation of savings, lending, and investment funds has become widespreadthe formation of savings, lending, and investment funds, and their description is as follows: a group agrees to pay a known monthly amount, which is kept in a common fund, and if one of the participants needs
to borrow from this fund, he then repays the loan in monthly installments, in addition to the permanent membership installment. The fund management also deducts a shared portion of the money to invest in trade and distributes the profits among the participants. The question is: What is the method for paying zakah in the following two cases? 1. A participant who has not borrowed from the fund, but whose balance in it, or part of it, is distributed among borrowers over varying terms, and some of them may be unable to pay. 2. A participant who has borrowed, and whose loan is less than his balance, or equal to it, or greater than it. Should one look at the difference between the two amounts, or does the fund have a legal standing, such that if a person lends to someone, we say that the debt does not prevent the obligation of zakah? And does his participation in the investment with a portion deducted from his balance have an effect in the two previous cases? We hope you will clarify this issue, as there is a pressing need for it among many people. May Allah guide you and correct your opinion.
A: In both cases, each person pays zakah on his share of the total money in the fund along with its profits when the lunar year has passed; because the amounts are their money. If everyone appoints an agent to pay the zakah from the fund's money, there is no harm.
As for loans owed by those who are unable to pay, there is no zakah on them.
to borrow from this fund, he then repays the loan in monthly installments, in addition to the permanent membership installment. The fund management also deducts a shared portion of the money to invest in trade and distributes the profits among the participants. The question is: What is the method for paying zakah in the following two cases? 1. A participant who has not borrowed from the fund, but whose balance in it, or part of it, is distributed among borrowers over varying terms, and some of them may be unable to pay. 2. A participant who has borrowed, and whose loan is less than his balance, or equal to it, or greater than it. Should one look at the difference between the two amounts, or does the fund have a legal standing, such that if a person lends to someone, we say that the debt does not prevent the obligation of zakah? And does his participation in the investment with a portion deducted from his balance have an effect in the two previous cases? We hope you will clarify this issue, as there is a pressing need for it among many people. May Allah guide you and correct your opinion.
A: In both cases, each person pays zakah on his share of the total money in the fund along with its profits when the lunar year has passed; because the amounts are their money. If everyone appoints an agent to pay the zakah from the fund's money, there is no harm.
As for loans owed by those who are unable to pay, there is no zakah on them.
Source
www.alifta.gov.sa
The Arabic text is copied verbatim from the original source, without any edits.