Is zakaat compulsory on money which has been put into a “kitty”. Kitty is basically when a group of people get together and each take out an equal monthly amount which goes into a pot, and they each take it turns to receive the full lump sum for that month.
In the Name of Allah, the Most Gracious, the Most Merciful.
As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.
Kitty and committee schemes are lending schemes. Money put into a kitty and committee scheme is Zakatable. Any money owed to the scheme can be deducted from one’s Zakatable assets value.
And Allah Ta’ālā Alone Knows Best
Mufti Faraz Adam al-Mahmudi,
The views and opinions expressed in this answer belong only to the author and do not in any way represent or reflect the views of any institutions to which he may be affiliated.
Arguments and ideas propounded in this answer are based on the juristic interpretations and reasoning of the author. Given that contemporary issues and interpretations of contemporary issues are subjective in nature, another Mufti may reach different conclusions to the one expressed by the author. Whilst every effort has been taken to ensure total accuracy and soundness from a Shari’ah perspective, the author is open to any correction or juristic guidance. On the event of any juristic shortcomings, the author will retract any or all of the conclusions expressed within this answer.
The Shari’ah ruling given herein is based specifically on the scenario in question. The author bears no responsibility towards any party that acts or does not act on this answer and is exempted from any and all forms of loss or damage. This answer may not be used as evidence in any court of law without prior written consent from the author. Consideration is only given and is restricted to the specific links provided, the author does not endorse nor approve of any other content the website may contain.