What is the ruling on zakah for money pledged with me? Is it obligatory for me to pay zakah on it, or is it not obligatory?
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The questioner : The questioner asks: What is the ruling on zakah for money pledged with me? Is it obligatory for me to pay zakah on it, or is it not obligatory?
The Shaykh : Pledged?
The questioner : Yes, indeed
The Shaykh : We must know whether this pledged money is among the types of wealth subject to zakah or not. If it is among the types of wealth subject to zakah, then its being pledged does not prevent the obligation of zakah on it. For example, if a woman pledges her jewelry with someone, that does not prevent the obligation of zakah on it, because zakah is obligatory on jewelry. Therefore, if it is pledged, the pledge does not exempt it from zakah, because ownership does not transfer through a pledge. However, if the pledged item is of a type that does not have zakah, such as if a person pledges his house with someone, then there is no zakah on the house, whether it is pledged or not, unless it is intended for trade. If it is intended for trade, it cannot be pledged, because a trader in houses cannot detain it by pledging it; rather, it must be free and available so that he can sell and buy with it.
The Shaykh : Pledged?
The questioner : Yes, indeed
The Shaykh : We must know whether this pledged money is among the types of wealth subject to zakah or not. If it is among the types of wealth subject to zakah, then its being pledged does not prevent the obligation of zakah on it. For example, if a woman pledges her jewelry with someone, that does not prevent the obligation of zakah on it, because zakah is obligatory on jewelry. Therefore, if it is pledged, the pledge does not exempt it from zakah, because ownership does not transfer through a pledge. However, if the pledged item is of a type that does not have zakah, such as if a person pledges his house with someone, then there is no zakah on the house, whether it is pledged or not, unless it is intended for trade. If it is intended for trade, it cannot be pledged, because a trader in houses cannot detain it by pledging it; rather, it must be free and available so that he can sell and buy with it.