Is zakat due on amounts deposited as a refundable security deposit for a school, with the intention of not reclaiming them for four years?
Funds held as security in schools, tenders, telecommunication companies, and the like must be paid on along with the owner's money if they are temporary and reach the . However, if they are held continuously or for years, zakat is paid on them for one year upon their receipt, because they are considered as unhoped-for debts. The Islamic Fiqh Academy has stipulated rulings regarding the zakat of investment accounts and funds held for transactional verification. Investment accounts and their profits are subject to zakat if the conditions for zakat are met. Similarly, executive and cash security deposits are subject to zakat for one year upon their receipt. As for legal deposits, zakat is paid on them along with the company's assets if they are temporary; otherwise, zakat is paid on them for one year upon their retrieval. Ibn 'Uthaymeen mentioned that money that cannot be accessed is not subject to zakat until it is received, and then zakat is paid on it for one year only.
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