Transactions & Dealings >> Other Transactions

Question # : 31850


My questions are as follow:-
1)I ve a LIC policy for last eight years having a premium of Rs 1000 PM hence principal amount is 96,000 is zakat wajib on it or not?
2)I ve taken two ICICI policies for my sisters for last three years, as it based on share market fluctuation is zakat wajib on principal amount or also on profit which i earned through it.
3)I bought a plot of 4 lacs for my newly born daughter for the intention of marrige of her is zakat wajib on it?
out of which 2 lacs is given to my wife at the time of our marrige to purchase household as we are settled abroad and 2 lac i added to make 4 lacs to purchase it.
4)If i purchase a land for the intention of the marriges of my sisters to sale off in future is zakat wajib on it.
5)Can i take a life insurance policy based on the investment of market risk and profit not fixed interest or i can invest on any financial plan based on investment in other companies or ways involving varibale profit plz guide me

Answer : 31850

Published on: May 11, 2011

بسم الله الرحمن الرحيم

(Fatwa: 811/L=297/tl=1432)

(1) Yes, zakah is wajib on capital amount i.e. on 96000.
(2) Zakah is wajib on capital amount. Is zakah on profit or not, we shall have a say about it when it is known that the profit is halal or haram.
(3) If you have not gifted that plot to your child as well as you have bought that plot with the intention of selling, then zakah shall be wajib on the price of plot. And if you did not make any intention at the time of buying the plot or you indented that the plot shall remain in your possession and if sometime you get benefit you shall sell it, in this case there is no zakah on that plot. Likewise, if you have gifted that plot to your child and you have kept it in your possession as wali (guardian) then too zakah shall not be wajib on this plot because there is no zakah on the property of a minor.
(4) If you buy these plots with the intention of selling, then zakah shall be wajib on their price.
(5) Most of the companies only claim that their procedure is Shariah compliant but in the real sense of term, they do not deal as per the Shariah. Hence, instead of investing in such companies, a man should do business by himself on the mode of Shirkah (partnership), Muzarabah or general business.

Allah knows Best!

Darul Ifta,
Darul Uloom Deoband

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