Zakaat on monies owed in lieu of services
Question
I have a consulting business. When my Zakaat date arrives, do I include in my Zakaatable wealth the money that clients owe me for services already rendered?
A client who owed me money paid me after several years. Am I required to pay Zakaat on this amount for all the past years?
Answer
Zakaat is not payable on monies owed to a person as payment for services rendered, such as consultancy fees, accounting fees, legal fees, or similar professional services.
Such amounts are only included in one’s Zakaat calculation once they are received if they remain in a person’s possession on the next Zakaat due date.
Even if the payment is delayed for several years, Zakaat will not be due for the previous years. [Bahrur Ra’iq 2/208, Fataawa DUZ 3/149]
And Allah Ta’ala Knows Best
- Answered by
- Mufti Muhammed Hamza Farooqui, Mufti Taahir Hansa
Fatawa SA is an independent, read-only index of fatawa already published by Jamiatul Ulama KZN. It is not a fatwa service. For your own situation, ask the issuing Darul Ifta directly.