Requires detailWorship · Zakat
Is Zakat due on Monies Invested in Kitty and Committee Schemes?
The question, as received
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.
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.
In short: money paid into a kitty is zakatable; amounts owed to it are deducted.
And Allah knows best.
Mufti Faraz Adam
Based on the Hanafi school and on the question as it was asked. Another mufti may reach a different conclusion. Read the disclaimer.