Q : My father gave me a sum of money that belongs to the orphans of my brother in order to invest it for six years. I bought several cars and sold them in monthly installments over a period of two years. This was the fixed system to be followed during the agreed upon time of six years. Now that a year has passed, is
Zakah (obligatory charity) due on the money of these orphans?
If so, how should the Zakah be calculated under the installment sales system?As soon as I receive the installments of two months, I buy a new car. There is another sum owned by the orphans that my father reserves for their expenses, is Zakah due on it? Advise us. May Allah reward you with the best!
The Zakah is due on the money mentioned, and the fact that the money belongs to the orphans makes no difference. Therefore, when a Hawl (one lunar year calculated from the time a property reaches the minimum amount upon which Zakah is due) passes, the Zakah becomes due on the cash, debts payable by other people as installments for the cars sold, and the cars for sale that are still in their hands. (Part No. 8; Page No. 25) May Allah grant us success. May Allah's Peace and Blessings be upon Prophet Muhammad, his family and Companions!