Question:

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.

The Answer:

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 
www.darulfiqh.com 

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