Can we deduct the deposit due (e.g. for purchase of a house)‎ and stamp duty from Zakat calculation ?

Fatawa Question

1. Before the start of Ramadhan, we agreed on the purchase of a house from Al-Rayan bank. The property price has already been agreed and the solicitors are already involved with paperwork Insha’Allah to go through soon. I have money in my bank account but of course I am also liable to pay to the money towards the 20 % deposit that I have already agreed with the bank Insha’Allah and the solicitors have already sent me an invoice for their bills which includes stamp duty. May I humbly ask if the deposit and the amount due to the lawyer as agreed can be deducted from the Nisab as liabilities which I have to pay as agreed with the two ? 2-Non-interest principal portion of the mortgage debt can be deducted from the amount on which Zakah is payable. However, can you clarify what will be the stance when it comes to Islamic mortgage since the system is different whereby I am renting the house from the bank and I buy part of the house with each monthly rent.

Fatwa

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Publisher

al-Qalam Shariah Scholar Panel

Publication Date

2015-12-27

Country of Publication

United Kingdom

Main Subjects

Religion
Law
Islamic Studies

Topics

• Islamic jurisprudence
• Financial transactions
• Alms tax
• Subprime mortgage

No. of Pages

1

Data Type

Fatawa

Language

English

Record ID

BIM-727165

• APA
• MLA
• AMA