Darul Iftaa Mahmudiyyah

I was retrenched from my employer and decided to invest my pension monies in a preservation fund in order to defer payment of tax.

· 24 Ramadan 1427 AH1 min readFatwa 14650English

Question

As-Salaam-u-Alaikum,

I was retrenched from my employer and decided to invest my pension monies in a preservation fund in order to defer payment of tax. This money is readily available to me, if I withdraw all or part of it I will have to pay income tax. My question is , do I have to pay Zakaat on the amount in the fund after deducting the average rate of tax each year, or do I only pay zakaat once after withdrawing the money and deducting the average tax payable?

Jazakallah

Answer

Assalamu Alaikum Warahmatullah

Brother/Sister in Islam

Zakat will be payable every year.

And Allah Knows Best

Mufti Ebrahim Desai

Please Note: Listen to live discourses and advices given by Mufti Ebrahim Desai throughout this Ramadhan streaming on WWW.RADIORAMADHANCROYDON.COM Every alternate day after Fajr. 5:30am and after Taraweeh at 10:15pm. Also 10:00am everyday, Q/A 2:00pm and after Asr Majlis 5:15pm. All times are according to British standard times.

Answered by
Mufti Ebrahim Desai
View original Compare with other Darul Iftas
Questions about this ruling, answered only from the archive with sources.

Where scholars differ, it’s safer to take the more cautious view.

Fatawa SA is an independent, read-only index of fatawa already published by Darul Iftaa Mahmudiyyah. It is not a fatwa service. For your own situation, please ask a Mufti. Report an issue

For corrections or mistakes, please email us at fatawasa786@gmail.com.

Source: Darul Iftaa Mahmudiyyah — https://askimam.org/public/question_detail/14650
Fatawa SA: https://fatawa.co.za/fatwa/askimam-14650

Related fatawa