Zakaah on provident funds

QUESTION:

With regards to the question on a provident fund where the wife becomes the beneficiary, is Zakaat payable on receipt of the funds, or is there no Zakaat to be paid at all?

ANSWER:

We assume that your query pertains to an involuntary provident fund imposed upon you by your employer. We also understand that you have nominated your wife as the sole beneficiary of the fund. Now, if you pass away before the fund reaches maturity, and the funds are paid out directly to your wife, then she will be required to pay Zakaat when her next Zakaat date comes in (after receiving the funds). She will not be required to pay Zakaat before the pay-out.

وروى ابن سماعة عن أبي يوسف عن أبي حنيفة أنه لا زكاة فيه حتى يقبض المائتين ويحول عليه الحول من وقت القبض وهو أصح الروايتين عنه (بدائع الصنائع 2/10)

Re:- Kitaab-un-Nawaazil Vol.6  Pg.477

ALLAH TA’ALA ALONE IN HIS INFINITE KNOWLEDGE KNOWS BEST!

ANSWERED BY:

Maulana Abdul Kader Fazlani

Date: – 27 Muharram 1445 / 15 July 2023

CHECKED AND APPROVED BY:

Mufti Mohammed Desai Saheb