Zakaat on Rental Deposits

 

Nasihah (Advice): Discharging of Zakaat – From the perfecrtion of one’s Islam

 

Sayyiduna Alqamah (radiyallahu anhu) reported that Nabi (Sallallahu alayhi wa sallam) told them, “The perfection of your Islam lies in discharging the Zakaat of your wealth.” [Musnad Bazzar]

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Question and Answer:

 

1. A tenant is moving into a flat. The tenant has paid a deposit for the flat. Who has to pay Zakaah on the deposit given for the flat? The tenant or the landlord?

 

(Question published as received)

 

1. In terms of paying Zakaat on rental deposits, there are commonly two scenarios that apply:

 

1. 1. If a tenant has given the landlord a non-refundable deposit towards the rental of the flat, the deposit belongs to the landlord. In that case, it is the responsibility of the landlord to pay any Zakaat due on the deposit.

 

2. If a tenant has given the landlord a refundable deposit that is redeemed by the tenant on the termination of the tenancy, then although the deposit is held by the landlord, the deposit belongs to the tenant. In that case, it is the responsibility of the tenant to add the deposit amount to his/her wealth and pay any Zakaat due on the deposit.

 

And Allah Ta’ala Knows Best

 

Mufti Ismaeel Bassa

Mufti Moosa Salie

 

(The answer hereby given is specifically based on the question asked and should be read together with the question asked. Islamic rulings on this Q&A newsletter are answered in accordance to the Hanafi Fiqh unless otherwise stated.) 

 

Fatwa Department
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