Zakah on Pension Fund
Question:
I have maintained a pension fund (Al Meezan Tahaffuz Pension Fund) in which one can only make investments till the retirement age but can'r withdraw the amount without incurring penalty. Will I be paying Zakat on this fund market value, every year? Even when I can't utilize or withdraw the fund amount.
Answer:
No, you are only obliged to pay Zakah on the money that you have authority to access and use. The fact that you have to pay penalty for this money means that you do not have free access and authority upon it.
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September 2013
I have maintained a pension fund (Al Meezan Tahaffuz Pension Fund) in which one can only make investments till the retirement age but can'r withdraw the amount without incurring penalty. Will I be paying Zakat on this fund market value, every year? Even when I can't utilize or withdraw the fund amount.
Answer:
No, you are only obliged to pay Zakah on the money that you have authority to access and use. The fact that you have to pay penalty for this money means that you do not have free access and authority upon it.
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September 2013
