Is zakat obligatory on the money remaining with the contractor when the time for zakat is due, while he continues to work?
If you have contracted with the contractor for a total sum for the building to be paid in installments, then the remaining amount is considered a debt upon you. The adopted by us is the saying of Imam Malik, which states that debt is deducted from the zakatable wealth, unless the payer of has other wealth exceeding his needs that can offset the debt, in which case he pays zakat on all his wealth.
Accordingly, you should consider the non-zakatable assets you own (such as the aforementioned building) as an offset against the remaining debt you owe to the contractor. If it is equal to or greater than the debt, you pay zakat on all your wealth. If it is less, you pay zakat on what remains after deducting the portion of the debt that has no offset.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
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- Summary from Ftawy's records, reviewed by El Fatwa's sharia committee.
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