AskImamDarul Iftaa Mahmudiyyah (AskImam)

I like to know is zakat wajib on the interest which is Ribha. Like 401K in USA or any money that is Ribha?

Fatwa 3468English
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Question

I just read your answer to a question on paying zakat on 401K which is Haram. How in the world Muslim be apying zakat on the money which is haram? or Is it been declared Halal?

Answer

Interest monies must be given to the poor and needy who are eligible to accept Zakaat without the intention of reward. However, interest received from government institutes, eg. post office could be used to offset government taxes. Interest received from private banks cannot be used to offset taxes. It may be used to offset interest charged from the same bank.

There is no Zakaat on interest money.

and Allah Ta'ala Knows Best

Mufti Ebrahim Desai
FATWA DEPT.

Answered by
Mufti Ebrahim Desai
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