Zakaat- Superannuation

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Question:

Assalamu Alaikkum,
I have a question on Zakah. Could you please guide with respect to Hanafi Madhab?

1. I have superannuation (PF) account in India. It’s paid through portion of my salary and employer contribution. I am not paying anything voluntarily. Do I need to pay zakah for this money?

Answer:

Wa alaykum salam.

Please see the answer given yesterday below;

Our view is that it is not compulsory to pay zakat on one’s superannuation money until one gains access to it (i.e. when one reaches the age of retirement etc.). And when one does gain access to it, he will NOT have to pay zakat on it for the previous years; he will merely have to pay zakat on it from then onwards.

There are some scholars, however, who take the view that one has to pay zakat on one’s superannuation money every year just like one has to pay zakat on other money in one’s ownership every year, provided that he himself handed over his superannuation money to a particular company in order that the company can invest the money for him. If one wants to act upon this view to be on the safe side, it will be a commendable act.

2. If someone built a building with the intention of renting for commercial purpose but left vacant for about two years without occupancy and without earning rents even now.  Do we need to pay zakah for this building value?

Answer:

There is no zakaat due on property assets unless it was purchased with the intention of resale. If that was the case then it will be treated as merchandise for trade and zakaat would be due on the market value of property. If however it was not purchased for the primary reason of resale but just as an asset to earn income through rent then zakaat would be due on the income accrued only.

3. If someone has a service based business, how does he/she should calculate zakah? There is no commodity in shop. It’s logistics business.

Answer:

Since you have no goods or merchandise zakaat would only be due on the income accrued by the business.

Shaykh Mohammed Shakeeb.

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