Zakat on excess credit held by utility company
Question
Most people pay their gas and electric bills via direct debit and the utility companies estimate the annual usage and then work out the annual expected cost and then split the payment of that over 12 months. Sometimes, as a result, there is excess credit especially in the summer months. Is Zakat necessary on that excess if the Zakat anniversary falls in that period?
بسم الله الرحمن الرحیم
Answer
Zakat is not necessary on the excess credit because the amount paid is contractually due and paid to the utility company before the Zakat anniversary, even if a part of the electricity or gas paid for is used after the Zakat anniversary.
Allah knows best
Yusuf Shabbir
11 Ramadan 1446 / 11 March 2025
Approved by: Mufti Shabbir Ahmed and Mufti Muhammad Tahir
