Zakat and deducting future bills
A person’s yearly Zakat date fell on April 17 this year. In regards to his business assets:
- Can he deduct as a current liability his shop rent for the month of May which is due on May 1st from his assets?
- If a person has a lease, is there a view that you can deduct up to 1-year rental lease expense as a valid liability?
بسم الله الرحمن الرحیم
A person will only deduct liabilities that are due on his Zakat anniversary based on the lunar calendar, not the liabilities that arise thereafter. Therefore, the shop rent for May will not be deducted. The same applies to the rent for the forthcoming year, unless one is contractually liable on the Zakat anniversary to pay for the full year albeit in instalments.
Allah knows best
16 Dhū al-Ḥijjah 1444 / 4 July 2023
Approved by: Mufti Shabbir Ahmed and Mufti Muhammad Tahir