Zakah on Debts and Real Estate Intended for Personal Use
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Fatwa No. ( 2390 )
Q: I have a sum of money of about one hundred thousand riyals, which is a debt owed by a solvent person. My monthly salary is about four thousand riyals, and my family consists of ten people. I own a house for which I borrowed three hundred thousand from the government. Since the construction was completed, I have lived in it and have not benefited from its rental income, as I do not own any other property. I have an annual debt to the government of twelve thousand riyals to repay the construction loan. I also own a plot of land that I received from the government after the construction, valued at fifty thousand riyals. My question is: Is zakah obligatory on this money and the value of this land given the circumstances I have described? That is, I have a debt to the government that is greater than the zakah on my wealth, knowing that I am able to set aside from my salary what is needed to repay the government debt, if Allah wills. In the past, I used to pay the zakah while in this situation, but now I am seeking the truth that will clear my conscience. May Allah reward you.
A: First: Zakah is a pillar of Islam that it is obligatory for every Muslim upon whom it is due to pay to those who are entitled to it with trust, hoping for Allah’s reward and fearing His punishment. Second: What you were doing by paying your zakah while in the situation you described in your question is exactly correct. The debt you mentioned that is
owed by a solvent person is subject to zakah whenever the lunar year passes over it. Third: There is no zakah on the house you live in, nor on the land that came to you by grant, unless you prepared it for sale and the lunar year passed over it after you prepared it for sale. Fourth: The installment you owe to the Development Fund—your situation as you described it does not prevent the obligation of zakah on the money you have. So continue as you are, and Allah, Glorified and Exalted is He, will reward you and replace it for you. He, Exalted is His Majesty, says:[Saba 34:39] . And success is from Allah. May Allah send prayers and blessings upon our Prophet Muhammad, his family, and his Companions.
Q: I have a sum of money of about one hundred thousand riyals, which is a debt owed by a solvent person. My monthly salary is about four thousand riyals, and my family consists of ten people. I own a house for which I borrowed three hundred thousand from the government. Since the construction was completed, I have lived in it and have not benefited from its rental income, as I do not own any other property. I have an annual debt to the government of twelve thousand riyals to repay the construction loan. I also own a plot of land that I received from the government after the construction, valued at fifty thousand riyals. My question is: Is zakah obligatory on this money and the value of this land given the circumstances I have described? That is, I have a debt to the government that is greater than the zakah on my wealth, knowing that I am able to set aside from my salary what is needed to repay the government debt, if Allah wills. In the past, I used to pay the zakah while in this situation, but now I am seeking the truth that will clear my conscience. May Allah reward you.
A: First: Zakah is a pillar of Islam that it is obligatory for every Muslim upon whom it is due to pay to those who are entitled to it with trust, hoping for Allah’s reward and fearing His punishment. Second: What you were doing by paying your zakah while in the situation you described in your question is exactly correct. The debt you mentioned that is
owed by a solvent person is subject to zakah whenever the lunar year passes over it. Third: There is no zakah on the house you live in, nor on the land that came to you by grant, unless you prepared it for sale and the lunar year passed over it after you prepared it for sale. Fourth: The installment you owe to the Development Fund—your situation as you described it does not prevent the obligation of zakah on the money you have. So continue as you are, and Allah, Glorified and Exalted is He, will reward you and replace it for you. He, Exalted is His Majesty, says:
But whatever thing you spend [in His cause] - He will compensate it; and He is the best of providers."
وَمَا أَنْفَقْتُمْ مِنْ شَيْءٍ فَهُوَ يُخْلِفُهُ وَهُوَ خَيْرُ الرَّازِقِينَ
Source
www.alifta.gov.sa
The Arabic text is copied verbatim from the original source, without any edits.