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Zakt on Rental Income
Judgment Issued For Virtual Sharah Court
Imran A. Nyazee Version 1.0
nyazeeIcIoud.com January 3, 20l3
CIIe as: VSCJ-l (20l2)
The Petition
ri1i1ioN was Ied In IhIs courI seekIng a decIaraIory ronouncemenI
abouI Ihe ruIes oI zakt Ior reaI esIaIe, houses and Iazas IhaI were
meanI Ior Irade or renIaI Income. In arIIcuIar II was asserIed IhaI II
Iwo ersons, each havIng a mIIIIon doIIars InvesI IheIr money wIIh one
InvesIIng In goId and sIIver and Ihe oIher In renIaI roerIy, Ihe erson
who has InvesIed In goId and sIIver has Io ay zakaI, whIIe Ihe oIher has Io ay noI
on Ihe vaIue oI hIs roerIy, buI onIy on Ihe renI receIved aIIer II has been saved Ior
a year (awl). ThIs amounIs Io some kInd oI dIscrImInaIIon when Ihe aIm oI boIh Is
InvesImenI. A judgmenI Is soughI IhaI exIaIns Ihe reasons Ior Ihe dIerenI IreaImenI
meIed ouI Io Ihe owner oI reaI esIaIe, aIong wIIh an eIaboraIIon oI Ihe ruIes oI zakt
Ior such a erson.
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l Int1s oi 1ui Cnsi . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
2 Issuis Innmiu ion Tuis Cnsi . . . . . . . . . . . . . . . . . . . . . . . . . 4
3 Tui Ruiis S1n1iu Wi1u RinsoNiNo . . . . . . . . . . . . . . . . . . . . . . 4
4 ANnivsis oi 1ui Ruiis nNu x1iNuiNo 1ui MinNiNos . . . . . . . . . . . 8
5 Tui HoiuiNo . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
6 Issuis No1 Auunissiu nNu Wuitu nni Iii1 ion S1uuiN1s RitiiviNo
TnniNiNo . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
RiiiniNtis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
l Int1s oi 1ui Cnsi
1. The Issues oI zakt Iend Io be hIghIy comIex In Ihe wrIIIngs oI Ihe jurIsIs, even
Ihough Ihey may aear sImIe and dIrecI when a ruIIng has been Issued. The reason
Is obvIous: zakt deaIs wIIh Ihe enIIre range oI human acIIvIIy, weaIIh and Ihe means
oI earnIng weaIIh. The rImary ruIes In Ihe Qurn are generaI. Ior examIe:
l
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2 Vin1uni Sunninu Coun1 l

OI IheIr weaIIh, Iake adaqah |Qurn 9:l03| where Ihe word adaqah means zakt;

And Ihose In whose weaIIh Is a recognIzed rIghI, Ior Ihe (needy) who asks and hIm
who Is derIved (Ior some reason Irom askIng). |Qurn ?0:24, 25|
The word amwl (weaIIh or roerIy) In Ihe above verses Is generaI, IhereIore, II can
aIy Io any and aII kInds oI weaIIh. The Sunnah Ihen IdenIIes Ihe Iyes oI weaIIh IhaI
Is subjecI Io zakt and aIso rescrIbes Ihe raIes Io be charged. The jurIsIs cIassIIy Ihese
Iyes and kee sImIIar IhIngs IogeIher aIyIng varIous sIandards IhaI are derIved
mosIIy IromIhe IexIs. AI IImes Ihe IIemunder examInaIIon cannoI be cIearIy assocIaIed
wIIh one oI Ihe esIabIIshed caIegorIes, and IhIs causes conIusIon In Ihe mInds oI Ihose
who have Io ay zakt.
2. The Issue oI renIaI roerIy Is one such case. There Is some dIcuIIy In assocIaIIng
II cIearIy wIIh one oI Ihe esIabIIshed caIegorIes. ShouId II be IreaIed IIke goId and sIIver
or shouId II be IreaIed IIke IradIng goods7 Is II ossIbIe Io assocIaIe II wIIh agrIcuIIuraI
Iand and IIs roduce7 The earIIer jurIsIs, aI IeasI In Ihe anaI schooI, were abIe Io
seIIIe IhIs Issue wIIh greaI abIIIIy and cIarIIy.
3. In modern IImes, fatws abound IhaI convey Ihe ruIIng Io eoIe who have Io ay
zakt. Thus, Ihe Iearned Ahmad Raza Khan BareIvI Issues a one-IIne fatw sayIng IhaI
Ihe renI Irom a house wIII be subjecI Io zakt aIIer a year has assed aIIer Ihe recIeI oI
such renI.
l
The Iearned MuIII TaqI !smanI, hIs esIeemed broIher MuIII Ra !smanI
have aIso Issued sImIIar ruIIngs.
2
MuIII TaqI !smanI says IhaI Ihe renI receIved wIII be
added Io your cash asseIs and wIII be subjecIed Io zakt aI Ihe end oI Ihe year.
3
HIs son
has aIso wrIIIen a sImIIar book, whIch serves as a guIde on zakt Ior aI-Meezan Bank.
The guIde, reIyIng on Fatw Q Khn and Bahishti Zayvar, says: II a erson has
a house IhaI Is Ieased, Ihe vaIue oI Ihe house wIII noI be subjecI maIIer oI Zakah, as
IeasIng a roerIy does noI render II a IradIng asseI. However, Ihe renIaIs receIved
wIII be Ihe subjecI maIIer oI Zakah.
4
The guIde consIders renIaIs and wages Io be
weak debIs and says: The ruIIng Ior IhIs cIass oI debIs Is IhaI Zakah Is noI ayabIe
unIess IuII amounI Is aId and one Zakah year asses Ihereon aIIer aymenI. No Zakah
Is ayabIe Ior recedIng years.
5
There are, and musI be, counIIess oIher fatws oI a
sImIIar Iye, buI our urose here Is mereIy Io IndIcaIe Ihe revaIIIng ruIIngs as IacIs
Irom where we roceed.
4. The above fatws aear Io sIaIe Ihe correcI anaI osIIIon on Ihe basIs oI Ihe
sources oI Ihe schooI. The dIrecIIon Ihey Iake Is correcI, buI Ihe ruIIngs are IncomIeIe
l. See Amad RI Khn BareIvI, Fatw Riawiyyah, voI. 30 (Iahore: RI IoundaIIon, 2006), voI. l0,
l6l.
2. See, e.g., !smanI, Muhammad TaqI, p Zakt Kis Tarah ad Karen? (KarachI: Memon IsIamIc Pub-
IIshers, n.d.), 58.
3. IbId.
4. M. Imran AshraI !smanI and BIIaI Ahmad QazI, Guide to Zakah: Understanding and Calculation
(KarachI: QuranIc SIudIes PubIIshers, n.d.), l8.
5. IbId.
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l Vin1uni Sunninu Coun1 3
and arIIaIIy IncorrecI, as we wIII show IaIer. IurIher, no reasonIng Is rovIded aI aII,
whIch gIves rIse Io quesIIons IIke Ihe one we are IacIng In IhIs case. II Is noI cIear why a
house gIven on renI Is noI a IradIng asseI or even a commodIIy IhaI shouId be subjecIed
Io zakt on Ihe basIs oI IIs vaIue, Ior aIIer aII II Is weaIIh.
5. Ior fatws Irom Ihe oIher schooIs, we may reIy on Ihe weII known manuaI oI zakt
wrIIIen by Ihe resecIed YsuI aI-Qaraw.
6
We reIer Io Ihe IransIaIIon oI IhIs manuaI
by Monzer KahI. ChaIer 8 oI Ihe manuaI Is devoIed Io Ihe Issue oI houses and oIher
sImIIar roerIIes. There does noI aear Io be a cIear ruIIng on Ihe Issue In Ihose
schooIs, IhereIore, Ihe AuIhor Iocuses on dIerenI vIews Irom Ihe ComanIons (Ood be
Ieased wIIh Ihem), some weII known HanbaI jurIsIs, and a varIeIy oI sources. In Ihe
end he resorIs Io Ihe IormuIa I seIecI and gIves a ruIIng IhaI Is no dIerenI Irom Ihe
fatws above. The IegaI basIs or Ihe Irue raIIonaIe we are IookIng Ior Is mIssIng In
IhIs ImorIanI work Ioo. ChaIer 9 Is devoIed Io wages and ersonaI Incomes, abouI
whIch Ihere Is agaIn some conIusIon. The manuaI Is Indeed a good eorI and has Io be
arecIaIed.
6. Irom IhIs we may Iurn Io Ihe resoIuIIons oI Ihe IsIamIc IIqh Academy oI Ihe
OIC IocaIed aI Jeddah. ResoIuIIon No. 2(2/2) oI Ihe Ihe CouncII oI Ihe IsIamIc IIqh
Academy, Issued durIng IIs second sessIon, heId In Jeddah (KIngdom oI SaudI ArabIa),
Irom l0 Io l6 RabIuI ThanI l406 H (22-28 ecember l985) sIaIes as IoIIows:
Having looked into the studies presented about Zakat on real estates and rented non-agricultural
lands, and after thorough and in-depth deliberations which covered the subject from its dierent
aspects, it became evident that: 1. No clear statement is traced which levies Zakat on real estate
and rented lands. 2. Similarly, no statement has been reported levying current Zakat on the yield of
real estate and non-agricultural rented lands.
The Council RESOLVES:
1. No Zakat is levied on assets of the real estate and rented lands.
2. Zakat is due and payable on its yield, which is one fourth of the one tenth (2.5%), after the
elapsing of one year period from the date of its actual receipt, if all other conditions are present and
no impediments exist.
The neI eecI oI IhIs resoIuIIon Is no dIerenI Irom Ihe fatws menIIoned above. We
have Iound onIy one sIudy IhaI has been ubIIshed In Ihe Academys journaI.
?
II Is
ossIbIe IhaI Ihere were oIher sIudIes, buI Ihese have noI been ubIIshed. WhaI Is
surrIsIng Is IhaI Ihe sIudy does noI reIer IhIs ruIIng. II goes agaInsI II on mosI
counIs. II Is onIy Ihe IasI ara In IhIs sIudy, whIch says IhaI accordIng Io some Ihese
owners shouId be IeII aIone and whaIever Income Ihey have wIII uIIImaIeIy be added Io
Ihe cash asseIs Ihey have on whIch zakt can be aId aIIer Ihe assage oI a year.
8
II Is
6. YsuI Qaradw, Fiqh al-Zakah, Irans. Monzer KahI, voI. 2 (Jeddah: KIng AbduI AzIz !nIversIIy,
n.d.), voI. l, 235-268; Qarws oInIon Is aIso quoIed In Amad Iahm, aI-ZakI: Wujbuh I Ajr
aI-Aqr, Majallat Majma al-Fiqh al-Islm 2, no. l (2003): ll8.
?. Amad Iahm, aI-ZakI: Wujbuh I Ajr aI-Aqr, Majallat Majma al-Fiqh al-Islm 2, no. l
(2003): l09l9.
8. IbId., ll9.
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4 Vin1uni Sunninu Coun1 3
aIso surrIsIng IhaI an ouIsIandIng fatw Issued by a schoIar, who was aarenIIy Ihe
rsI resIdenI oI Ihe Academy, goes comIeIeIy agaInsI IhIs ruIIng.
9
7. The ImorIanI oInI In aII Ihese Is IhaI Ihe crucIaI oInIs oI IegaI reasonIng,
oInIed ouI by earIIer anaI jurIsIs, have noI been IncororaIed In any oI Ihe ruIIngs
menIIoned above. The resuII Is Ihe Iack oI a cIear undersIandIng oI Ihe Issue and con-
sequenIIy Ihe decIency In Ihe fatws Issued. The decIencIes wIII, hoeIuIy, be meI In
IhIs judgmenI.
8. II may be sIaIed agaIn IhaI IhIs Issue Is noI as sImIe as II mIghI aear Io
be. IurIher, II has Ihe oIenIIaI oI exIodIng InIo oIher areas IhaI are oI consIderabIe
ImorIance Ior modern economIes and economIc acIIvIIy. We wIII Iry Io conne our-
seII Io Ihe bare mInImum and deaI wIIh onIy Ihose Issues IhaI ow dIrecIIy Irom Ihe
dIscussIon. The IangenIIaI Issues, Ihough ImorIanI, wIII be Iaken u searaIeIy.
2 Issuis Innmiu ion Tuis Cnsi
The IoIIowIng Issues are Iramed:
WIIh whaI caIegory Is a house, or oIher roerIy, wIIh renIaI Income assocIaIed:
goId and sIIver, IradIng goods or oIher7
Is zakt Io be aId on Ihe vaIue oI Ihe roerIy or on Ihe renIaI Income7
II zakt Is Io be aId on renIaI Income Ihen aI whaI raIe and when7
WhaI abouI a IoI oI Iand IhaI Is boughI wIIh Ihe InIenIIon oI IradIng or reseIIIng,
buI on whIch no renI Is receIved7
II renIaI Income Is subjecI Io zakt, Is Ihe ruIe aIso exIended Io wages receIved
Ior rovIdIng some servIce7 II so whaI abouI ersonaI Income IhaI Is subjecI Io
Income-Iax In modern IImes7
3 Tui Ruiis S1n1iu Wi1u RinsoNiNo
9. The word zakt means growIh and Increase (al-nam). II Is aIso saId IhaI II a-
IIes Io urIcaIIon.
l0
OrowIh Is noI acIuaI growIh here and II means oIenIIaI growIh
deendIng uon some kInd oI acIIvaIIon. AI-KasanI says, The meanIng oI zakt Is
growIh and IhIs does noI occur exceI In weaIIh IhaI has Ihe oIenIIaI Ior growIh. By
IhIs we do noI mean acIuaI growIh as IhaI Is noI Iaken InIo accounI. We mean by II Ihe
sIaIe oI readIness oI weaIIh Ior growIh eIIher Ihrough tijrah (Irade) or asIurIng.
ll
10. No acIIvIaIIon Is requIred Ior goId and sIIver as Ihey are by IheIr very naIure,
havIng curreny-vaIue and are readIed Ior growIh.
l2
AccordIng Io Imm aI-Sarakhs,
9. Bakr Ibn Abd AIIh Ab Zayd, Fatw Jmiah f Zakt al-Aqr (RIy: r aI-Imah, 2000).
l0. Ab Bakr Ksn, Badi al-ani f Tartb al-Shari, ed. Muammad Adnn Ibn Ysn arwsh,
6 voIs. (BeIruI: r Iy aI-TurIh aI-Arab, 2000), voI. 2, 9l; Shams aI-AImmah Sarakhs, Kitb
al-Mabs, 30 voIs. (BeIruI: r aI-MarIIah, n.d.), voI. 2, l49.
ll. Ksn, Badi al-ani, voI. 2, 9l.
l2. IbId., voI. 2, 9l.
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3 Vin1uni Sunninu Coun1 5
IhIs meanIng Is derIved Irom Ihe verse: And Ihere are Ihose who hoard goId and sIIver
and send II noI In Ihe Way oI AIIah: announce unIo Ihem a mosI grIevous chasIIse-
menI.
l3
He says IhaI Ihe verse IncIudes Ihe meanIng oI zakt among oIher IhIngs. The
InIenIIon oI Ihe owner oI makIng such weaIIh grow Is IrreIevanI, because Ihe Iermkanz
Is aIIed Io burIed weaIIh IhaI Is noI InIended Ior Irade. The AImIghIy has, however,
Issued a warnIng abouI II whIch IndIcaIes IhaI Ihe InIenIIon oI Irade by Ihe owner Is
noI reIevanI.
l4
11. In aII oIher Iorms oI weaIIh, oIher Ihan goId and sIIver, acIIvaIIon Is requIred on
Ihe arI oI Ihe owner. ThIs acIIvaIIon requIres Iwo IhIngs accordIng Io Ihe jurIsIs oI Ihe
anaI schooI: an InIenIIon Io IreaI Ihe weaIIh as weaIIh Ior Irade and an acI on Ihe
arI oI Ihe owner.
l5
Thus, II a erson has a Iew Ions oI wheaI IyIng In hIs warehouse,
he may Iorm an InIenIIon IhaI he wIII use IhIs Ior Irade. He may Ihen underIake an
acI IIke oerIng Ihe wheaI Ior saIe. ThIs wIII comIeIe Ihe acI oI acIIvaIIon. Imm aI-
Ksn says IhaI IhIs acIIvaIIon can be exIIcII or II may be by ImIIcaIIon. xIIcII
means IhaI when he Is buyIng someIhIng, he Iorms an InIenIIon IhaI Ihe goods wIII be
Ior Irade. He aIso says someIhIng IhaI Is reIevanI Ior our dIscussIon wIIh resecI Io
exIIcII acIIvaIIon: Or he gIves hIs house on renI wIIh Ihe InIenIIon oI Irade, whIch
Ihen becomes weaIIh oI Irade due Io Ihe exIsIence oI Ihe exIIcII InIenIIon oI Irade IInked
wIIh Ihe conIracI oI Irade (renIIng In IhIs case). There Is no doubI IhaI urchase (wIIh
Ihe InIenIIon oI Irade) Is meanI Ior Irade and so aIso renIIng, because II Is comensaIIon
oI weaIIh wIIh weaIIh, whIch Is Irade In IIs very essence. II Is Ior IhIs reason IhaI Ihe
auIhorIzed sIave comes Io acquIre Ihe auIhorIIy oI renIIng/hIrIng Ihrough an auIhorIIy
Ior Irade. InIenIIon IInked Io Ihe acI Is acknowIedged.
l6
ThIs sIaIemenI IndIcaIes IhaI
renIIng or hIrIng are arI oI tijrah whIch has a wIder meanIng Ihan Ihe ngIIsh word
Irade.
12. The cause oI Ihe obIIgaIIon oI zakt Is ml (weaIIh), aIIhough II Is assocIaIed wIIh
Ihe auence oI Ihe owner, whIch Is deIermIned Ihrough Ihe mInImum scaIe (nib). As
Ihe cause Is reacIIvaIed wIIh renewed growIh, Ihe awl or erIod oI one year has been
xed Io IacIIIIaIe acIuaI or oIenIIaI growIh. WIIh every new awl Ihe obIIgaIIon Is
renewed.
l?
The Ierm weaIIh has a very wIde meanIng and covers everyIhIng havIng a
vaIue. IIkewIse, Ihe IermIrade has a very wIde meanIng In IsIamIc Iawand covers even
maIIers IIke renIIng and currency-exchange.
l8
The word Irade Ihen Is anyIhIng IhaI
gIves, or has Ihe oIenIIaI oI gIvIng, an earnIng, whaIever Ihe Iorm oI such earnIng.
13. WeaIIh Is goId and sIIver and Ihen IradIng goods. Iand meanI Ior agrIcuIIure
Is aIso weaIIh, buI Is IreaIed searaIeIy. The Issue Is: Io whaI Iye Is renIed roerIy
IInked7 II Is obvIous IhaI In cannoI be IInked Io goId and sIIver IhaI do noI requIre Ihe
InIenIIon Io Irade Ior uroses oI zakt. ven goId and sIIver IaII wIIhIn Ihe meanIng oI
Irade, buI are dIsIInguIshed as Ihey do noI requIre InIenIIon. RenIed roerIy, Ihere-
Iore, IaIIs wIIhIn Ihe caIegory oI IradIng goods. There Is a dIsIIncIIon, however, IhaI has
l3. Qurn 9:34.
l4. Sarakhs, al-Mabs, voI. 2, l9l.
l5. Ksn, Badi al-ani, voI. 2, 9l; Sarakhs, al-Mabs, voI. 2, l9l.
l6. Ksn, Badi al-ani, voI. 2, 92.
l?. Ior aII Ihese sIaIemenIs, see Sarakhs, al-Mabs, voI. 2, l4950.
l8. To undersIand Ihe deIaIIs oI such meanIngs, see generaIIy Imran Ahsan Khan Nyazee, The Concept
of Rib and Islamic Banking (IsIamabad: NIazI PubIIshIng House, l995).
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6 Vin1uni Sunninu Coun1 3
Io be keI In mInd. TradIng goods are meanI Ior saIe, IhereIore, aII reaI esIaIe meanI
Ior saIe can easIIy IaII In IhIs caIegory and can be assIgned Ihe same ruIes as IradIng
goods. ProerIy gIven ouI on renI Is noI Ior saIe, so how Is IhIs dIsIIncIIon handIed by
Ihe jurIsIs7
14. The jurIsIs IInk renIed roerIy wIIh Iwo IhIngs aI Ihe same IIme: IradIng goods
and debIs. Are debIs ml7 In Ihe resenI IImes, Ihe Issue oI debIs has been comIeIeIy
Ignored, or II Is beIIer Io say, sweI asIde casuaIIy by modern muIIIs and schoIars. The
rsI ruIIng
l9
Issued by Ihe IsIamIc IIqh Academy oI Ihe OIC has Ihe IoIIowIng Io say:
After thorough discussions which covered the subject from its dierent aspects, it became evident
that :
1. There is no statement in the Book of Allah, Almighty, or the Sunnah of His Messenger (PBUH),
elaborating (rules of) Zakat on Debts;
2. Numerous views have been reported from the Companions and the Tabeeen (the generation after
the Companions)May Allah be satised with themfrom the viewpoint of the method of paying
Zakat on debts.
3. Accordingly, the Islamic Schools of Jurisprudence have diered clearly on the subject.
4. The dierence of opinion (regarding this subject) is, in turn, caused by their diering opinion re-
garding the (following) fundamental principle: whether receivable assets can be classied as actually
received assets.
The Council RESOLVES THE FOLLOWING:
1. The lender is obligated to pay Zakat, every year, on his loaned money, if the borrower is solvent.
2. The lender is obligated to pay Zakat, after the elapse of one year starting from the day he actually
receives his loaned money, if the borrower is impoverished or controverting.
The above anaIysIs and Ihe resoIuIIon, we are Iorced Io say, are very weak and hIghIy
suercIaI. ThIs wIII become obvIous as we roceed wIIh our anaIysIs. On a IIghIer noIe
we may ask: II Ihe schooIs have dIered, Ihen who are Ihese eoIe7 Bankers7 The neI
resuII oI Ihe resoIuIIon Is: Ignore debIs Ior Ihey are noI reIevanI, jusI Iocus on Ihe cash
asseIs oI Ihe MusIIm aI Ihe end oI Ihe year. The resoIuIIon, In Ierms oI IIs ImacI, Is
IdenIIcaI Io Ihe ruIIng oI IhIs Academy on reaI esIaIe.
15. II Is dIcuII Ior us Io deIermIne Ihe naIure oI Ihe schooI auIhorIIy Ior Ihe mem-
bers oI Ihe Academy, buI our judgmenI Is based on Ihe osIIIon oI Ihe anaI schooI.
We wIII, IhereIore, have recourse Io Ihe Iwo mosI resecIabIe and auIhenIIc works oI
our Imms: Shams aI-AImmah aI-Sarakhs and aI-Ksn (may AIIah be Ieased wIIh
Ihem). The meIhod we IoIIow In severaI aragrahs wIII be IhaI we wIII arahrase
excerIs Irom Iwo ages oI al-Mabs. We do noI need Io gIve InoInI reIereces Io
eIIher auIhor, because aI-Ksn says exacIIy Ihe same IhIng.
20
As Iong as we do IhIs,
Ihe Sun wIII conIInue Io shIne on Ihe VIrIuaI SharIah CourI.
l9. See ResoIuIIon No. l (l/2) Issued durIng IIs second sessIon, heId In Jeddah (KIngdomoI SaudI ArabIa),
Irom l0 Io l6 RabIuI ThanI l406 H (22-28 ecember l985).
20. The ages numbers on whIch Ihe IoIIowIng IexI aears are as IoIIows Ior boIh Imms. Sarakhs,
al-Mabs, voI. 2, l9596; Ksn, Badi al-ani, voI. 2, 889l.
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4 Vin1uni Sunninu Coun1 ?
16. The Iearned Imm aI-Sarakhs, Ihe Sun oI Imms, says: ThereaIIer, debIs are
oI Ihree Iyes accordIng Io Ab anIah, AIIah Ihe xaIIed bIess hIm. A sIrong debI
IhaI Is a counIer-vaIue Ior roerIy whose basIs wouId be Irade, had II conIInued In hIs
ownershI. A debI oI mIddIe sIrengIh, whIch Is a counIer-vaIue Ior roerIy on whIch
Ihere wouId be no zakt had II sIayed In hIs ownershI, IIke work-cIoIhes and work IooIs.
The IhIrd Iye Is a weak debI, whIch Is a counIer-vaIue Ior IhIngs IhaI are noI deemed
roerIy/weaIIh, IIke dower, comensaIIon In khul, and ul Ior InIenIIonaI homIcIde.
17. In Ihe sIrong debI, II Is noI bIndIng Ior Ihe hIm Io ay unIess he has Iaken IorIy
dIrhams oI Ihe debI InIo ossessIon. When he takes this amount into possession,
he pays one dirham on it, and he does so for each forty dirhams recovered. In
Ihe debI oI medIum sIrengIh, he Is noI bound Io ay unIII he Iakes a hundred dIrhams
InIo ossessIon. When he does so he ays ve dIrhams. In Ihe case oI Ihe weak debI, he
Is noI bound Io ay zakt unIess he Iakes ossessIon oI Ihe amounI and a whoIe year
(awl) has assed.
18. Ibn Samah has narraIed Irom Ab YsuI Irom Ab anIah, Ood bIess Ihem,
IhaI debI Is oI Iwo Iyes, and he deemed Ihe medIum debI Io be Ihe same as Ihe weak
debI. ThIs Is aIso Ihe reIerrence exercIsed by aI-Karkh, whIch he has recorded In hIs
Mukhtaar.
19. Ab YsuI and Muammad, Ood bIess Ihem, maInIaIn IhaI debIs are aII oI Ihe
same Iye, and no zakt Is due on Ihem rIor Io ossessIon. Each time an amount
is recovered he is bound to pay zakt on it in accordance with the amount
recovered whether this is less or more. ThIs does noI aIy Io Ihe debI creaIed due
Io Ihe IransacIIon oI kitbah on whIch no zakt Is due unIess a awl has assed aIIer
ossessIon.
The basIs Ior Ihe above ruIes Is IhaI a debI Is noI ml (roerIy/weaIIh) In reaIIIy. Thus,
II Ihe credIIor makes an oaIh IhaI he has no ml he Is noI vIoIaIIng IhIs oaIh. Yet, it
becomes wealth through ascertainment by means of possession. Thus, Ihe nib
Ior zakt Is noI consIIIuIed unIII IhIs conversIon Iakes Iace and Ihe awl does noI aIy
exceI Io Ihe nib. As for the amount of debt that is the counter-value of trading
goods, the ownership of the value is established for it prior to its becoming a
debt. It is, therefore, remains the same as what it was originally, with the
substitute acting as the original leading to zakat prior to possession, however,
the obligation to pay depends upon possession. |ThIs Is Ihe crucIaI oInI IhaI
musI be arecIaIed Ior undersIandIng Ihe reasonIng underIyIng ImmedIaIe aymenI
on ossessIon II Ihe nib Is comIeIe|.
20. In Ihe case oI renI/wages, Ihere are Ihree narraIIons Irom Ab anIah, Ood
bIess hIm. In one narraIIon, he deems renI Io be sImIIar Io dower, because II Is noI
a counIer-vaIue Ior ml In reaIIIy as II Is a counIer-vaIue Ior beneIs (manfaah). In
anoIher narraIIon he deemed II sImIIar Io a counIer-vaIue Ior work cIoIhes, because
beneIs are weaIIh In some resecIs, buI Ihey are noI a subjecI-maIIer Ior zakt. The
sound narration, however, is that the rent for a house meant for trade or wages
of a slave meant for trade have the same status as the price of trading goods.
|MeanIng Ihereby IhaI II Is IIke a debI creaIed oI a credII saIe. The seIIer has soId goods
on credII Ior whIch aymenI may be receIved aIIer some monIhs or even years.| ach
IIme he ossesses IorIy dIrhams, he Is under an obIIgaIIon Io ay zakat consIderIng Ihe
.
.
.
.
8 Vin1uni Sunninu Coun1 4
counIer-vaIue oI beneIs Io be Ihe counIer-vaIue oI Ihe ayn (IangIbIe roerIy).
4 ANnivsis oi 1ui Ruiis nNu x1iNuiNo 1ui MinNiNos
21. The above reasonIng rovIded by Ihe Iwo Imams hIghIIghIs severaI ImorIanI
oInIs:
AII sIrong debIs, whIch are mosI debIs In Ihe commercIaI worId, are subjecI Io
zakt even beIore Ihey have become ayabIe, because Ihey arIse Irom roerIy
IhaI was In Ihe ossessIon oI Ihe owner and Is assumed Io be In hIs ossessIon
IhroughouI Ihe duraIIon oI Ihe debI. The awl, IhereIore, Is comIeIe even beIore
Ihe debI Is aId back gIvIng rIse Io Ihe obIIgaIIon oI zakt. Zakt cannoI be aId
unIess some amounI Is Iaken InIo ossessIon. ConsequenIIy, aymenI Is Io be
made as soon as an amounI equaI Io IorIy dirhams accumuIaIes due Io recovery
oI Ihe debI.
The argumenI IaIIs IhaI zakt wIII be IevIed IwIce on Ihe same amounI, once aI
Ihe IIme oI ossessIon and anoIher IIme aIIer Ihe assage oI a awl IoIIowIng
recovery. The reason Is IhaI ImmedIaIe aymenI was Ior Ihe revIous awl IhaI
assed durIng rIor ossessIon oI Ihe roerIy and Ihe duraIIon oI Ihe debI.
RenIed roerIy Is jusI IIke Ihe sIrong debI descrIbed by Ihe jurIsIs, IhaI Is, IIke
Ihe amounI due Io Ihe seIIer aIIer a credII saIe (caIIed bay al-nasah or bay
muajjal). Zakt Is, IhereIore, Io be aId as soon as IorIy dirhams worIh oI renI
accumuIaIes In Ihe hands oI Ihe owner oI roerIy aI Ihe raIe oI one dirham Ior
every IorIy. ThIs has Io be done Ior every InsIaIImenI oI IorIy dirhams coIIecIed.
RenIed roerIy Is IIke debIs Irom one ersecIIve, buI Is IIke IradIng goods Irom
Ihe oIher. II a erson who has renIed ouI some roerIy Iorms an InIenIIon Io seII
IhaI roerIy and makes an oer Ior saIe or makes oIher arrangemenIs Ior saIe,
he wIII become IIabIe Ior zakt on boIh counIs, IhaI Is, Ior Ihe renI as weII as Ihe
vaIue oI Ihe roerIy IreaIed as IradIng roerIy. There Is no cIash beIween Ihe
Iwo charges.
II a erson owns a IoI oI Iand IhaI he has boughI, wIIh Ihe InIenIIon oI seIIIng,
Ihen accordIng Io Imm aI-Ksns vIew recorded above II becomes an exIIcII
decIsIon Io Irade, however, we may add here IhaI an addIIIonaI acI sIIuIaIed by
Imm aI-Sarakhs may be Iaken InIo accounI. Thus, II IhIs erson brIngs hIs IoI
oI Iand InIo Ihe markeI by makIng an oer or makIng oIher arrangemenIs Ior IIs
saIe, II wIII be become IradIng roerIy and wIII be subjecI Io zakt.
22. We may now Iurn very brIey Io Ihe Issue oI Ihe sIave renIed ouI by Ihe mas-
Ier. He Is IIabIe Io zakt on Ihe wages receIved, and Ihe zakt has Io be aId aI once
Ior every IorIy dirhams oI wages coIIecIed. There are no sIaves Ioday, buI Ihere are
exerIs, consuIIanIs, and oIher emIoyees whose servIces are renIed ouI by Indeen-
denI conIracIors or InsIIIuIIons Io oIhers. The ruIes Ior hIred sIaves wIII aIy mutatis
mutandis Io emIoyers receIvIng wages Ior work done Ior oIhers by IheIr emIoyees.
.
.
.
.
6 Vin1uni Sunninu Coun1 9
The argumenI IhaI heavy saIarIes are aId Io Ihese emIoyees by Ihe emIoyers IaIIs,
because Ihe masIer used Io send much more on such sIaves IakIng care oI IheIr needs,
InIcudIng Iood, heaIIh, marrIage and chIIdren.
23. The ersonaI Income oI a erson Is noI renIaI Income as Ihe erson cannoI be hIs
own asseI or roerIy. He ays on Ihe amounI heId aIIer Ihe awl.
24. ThIs Is where Ihe decIaraIIon soughI by Ihe eIIIIoner ends, and we may Iurn Io
Ihe hoIdIng.
.
5 Tui HoiuiNo
25. II Is heId IhaI zakt Is Io be aId on aII renIed roerIy by Ihe owner, whoever he
may be, and Is Io be aId aI once Ior every amounI equIvaIenI Io 40 dirhams coIIecIed.
26. AII emIoyers renIIng ouI Ihe servIces oI IheIr emIoyees Io oIhers are IIabIe Io
ay zakt aI once Ior every amounI equIvaIenI Io 40 dirhams coIIecIed.
27. Zakt Is noI ayabIe on a ersons ersonaI Income as he cannoI be hIs own asseI.
28. II IhIs Is ImIemenIed, no oor erson wIII be IeII In any MusIIm counIry.
AIIah knows besI.
Imran Ahsan Khan Nyazee
Muharram 2, l434
ecember 28, 20l2
.
6 Issuis No1 Auunissiu nNu Wuitu nni Iii1 ion S1uuiN1s RitiiviNo
TnniNiNo
29. II was sIaIe In Ihe maIn judgmenI IhaI IhIs Issue can exIode InIo areas IhaI are
noI Ihe objecIIve oI Ihe judgmenI and Ihe eIIIIon. II Is beIIer Io menIIon Ihese as obiter
dicta. In IacI, we wIII consIder jusI Iwo sIIuaIIons Io IndIcaIe Ihe naIure oI robIems
IhaI can emerge Irom Ihe ruIes oI zakt.
30. The rsI sIIuaIIon Is where aI money or aer money Issued by sIaIes Is
consIdered as currency equIvaIenI Io goId and sIIver, and Is used Ior Ihe vaIuaIIon oI
oIher goods and servIces. ResoIuIIon No. 2l (9-3) oI l40?H/l986 has aIready resoIved
IhaI: Paer money Is reaI money, ossessIng aII characIerIsIIcs oI vaIue, and subjecI
Io SharIa ruIes governIng goId and sIIver vIs-a-vIs usury, Zakat, Salam and aII oIher
IransacIIons. ThIs has Ihe IoIIowIng ImIIcaIIons:
AII Ioans recovered by banks (or oIher ersons) are IIabIe Io zakt, whIch has Io
be aId aI once II Ihe amounI reaches Ihe nib or accumuIaIes Io consIIIuIe Ihe
nib wIIh resecI Io a sIngIe Ioan IransacIIon. The raIe wIII be one dirham Ior
every IorIy dirhams worIh oI recovery.
.
.
.
.
l0 Vin1uni Sunninu Coun1 6
AII accounIs oened wIIh banks, Ihough Ihey are caIIed deosIIs, are In reaIIIy and
IegaIIy Ioans gIven Io banks. ConsequenIIy, aII amounIs wIIhdrawn by cIIenIs Irom
IheIr accounIs wIII be subjecI Io zakt as above as soon as Ihe wIIhdrawn amounI
accumuIaIes InIo Ihe nib.
The aymenI oI zakt Is noI aecIed by and has noIhIng Io do wIIh rib.
ThIs wIII eecIIveIy shuI down aII bankIng acIIvIIy as we know II and wIII aIso uI an
end Io Ihe creaIIon oI Iake money.
31. The second sIIuaIIon Is where aer money Is noI IreaIed as currency as sIaIed
In Ihe resoIuIIon above. AII Ioan IransacIIons wIII Ihen be Ihe exchange oI debIs Ior
debIs, whIch are unIawIuI. We do noI wIsh Io go any IurIher wIIh IhIs, buI one IhIng Is
cIear: IhIs rovIsIon wIII eIImInaIe aer currency and brIng back Ihe goId dinr and
sIIver dirham.
RiiiniNtis
Ab Zayd, Bakr Ibn Abd AIIh. Fatw Jmiah f Zakt al-Aqr. RIy: r aI-Imah,
2000.
BareIvI, Amad RI Khn. Fatw Riawiyyah. VoI. 30. Iahore: RI IoundaIIon,
2006.
Iahm, Amad. aI-ZakI: Wujbuh I Ajr aI-Aqr. Majallat Majma al-Fiqh al-
Islm 2, no. l (2003): l09ll9.
Ksn, Ab Bakr. Badi al-ani f Tartb al-Shari. dIIed by Muammad Adnn
Ibn Ysn arwsh. 6 voIs. BeIruI: r Iy aI-TurIh aI-Arab, 2000.
Sarakhs, Shams aI-AImmah. Kitb al-Mabs. 30 voIs. BeIruI: r aI-MarIIah, n.d.
Nyazee, Imran Ahsan Khan. The Concept of Rib and Islamic Banking. IsIamabad:
NIazI PubIIshIng House, l995.
Qaradw, YsuI. Fiqh al-Zakah. TransIaIed by Monzer KahI. VoI. 2. Jeddah: KIng
AbduI AzIz !nIversIIy, n.d.
!smanI, Muhammad TaqI. p Zakt Kis Tarah ad Karen? KarachI: Memon IsIamIc
PubIIshers, n.d.
!smanI, M. Imran AshraI, and BIIaI Ahmad QazI. Guide to Zakah: Understanding and
Calculation. KarachI: QuranIc SIudIes PubIIshers, n.d.