Answered by Mawlana Ilyas Patel
If I have a Murabaha contract with a business, with the following details:
Duration: 2 years
Murabaha Price: $1000
The amount received every month: $42
How do I pay Zakat on the Murabaha contract?
Note: Keep in mind that the business can delay payments or even close permanently, so there’s an element of risk.
In the Name of Allah, the Most Merciful and Compassionate
I pray you are well. Thank you for seeking an Islamic answer.
You will pay Zakat on your Zakat anniversary day when one lunar year has passed on all your zakatable assets, including all that you have received from your Murabaha contract with that business in that year.
If the business delays payment or there is a risk of closing down, it does not matter as long as you include the profit of the Murabaha contract in your Zakat anniversary date. [Ibn ‘Abidin, Radd al-Muhtar]
[Mawlana] Ilyas Patel
Checked and Approved by Shaykh Faraz Rabbani
Mawlana Ilyas Patel is a traditionally-trained scholar who has studied within UK, India, Pakistan, Syria, Jordan and Turkey.
He started his early education in UK. He went onto complete hifz of Qur’an in India, then enrolled into an Islamic seminary in UK where he studied the secular and Alimiyyah sciences. He then travelled to Karachi, Pakistan.
He has been an Imam in Rep of Ireland for a number of years. He has taught hifz of the Qur’an, Tajwid, Fiqh and many other Islamic sciences to both children and adults onsite and online extensively in UK and Ireland. He was teaching at a local Islamic seminary for 12 years in the UK where he was a librarian and a teacher of Islamic sciences.
He currently resides in UK with his wife. His personal interest is love of books and gardening.