Zakah on deposited funds

21-1-2014 | IslamWeb

Question:

I have an insurance deposit of 20,000 Dinars for the license of a construction company. I deposited this sum into a financial firm. Is Zakaah due on this money noting that it is now not eligible for withdrawal? May Allaah Reward you.

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Answer:

All perfect praise be to Allaah, The Lord of the worlds. I testify that there is none worthy of worship except Allaah, and that Muhammad, sallallaahu ‘alayhi wa sallam, is His slave and messenger.

If the money you deposited in the financial firm is still your own wealth and its not-being-eligible-for-withdrawal is temporary, meaning that if you stopped the activity of the company and cancelled the license you will restore the insurance money, then you have to pay its Zakah every year.

You have the choice either to pay the Zakah once a lunar year has passed or to delay the payment until you withdraw the money and pay the Zakah for all the years that have passed over it.

Allaah Knows Best.