I was retrenched from my employer and decided to invest my pension monies in a preservation fund in order to defer payment of tax.
Question
As-Salaam-u-Alaikum,
I was retrenched from my employer and decided to invest my pension monies in a preservation fund in order to defer payment of tax. This money is readily available to me, if I withdraw all or part of it I will have to pay income tax. My question is , do I have to pay Zakaat on the amount in the fund after deducting the average rate of tax each year, or do I only pay zakaat once after withdrawing the money and deducting the average tax payable?
Jazakallah
Answer
Assalamu Alaikum Warahmatullah
Brother/Sister in Islam
Zakat will be payable every year.
And Allah Knows Best
Mufti Ebrahim Desai
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- Answered by
- Mufti Ebrahim Desai
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