Re : https://qna.ilmhub.com/question/zakat-is-zakat-calculated-on-given-money/
What’s the ruling on deposit for purchase of an item? For example the deposit for a new condo and the condo has not been built yet and purchase is still pending.
Bismillahi Ta’ala
Walaikum Assalam Warahmatullah
Deposit, or Lay-By could be set up for a purchase on an item in different ways.
a. The deposit can be a non-refundable deposit which will be forfeited if the person does not pursue th purchase of the commodity. This is not Shariah Compliant. If this deposit is made as a core condition in the purchase, then it could even be construied as an interest charged upfront without any service or commodity in its lieu.
b. If the deposit is established as an advance towards the purchase of the commodity, then there is scope for it. It will be placed as a upfront payment towards the commodity, and then the price of the commodity will reconsile this amount once the purchase goes through. In chance of transaction falling out, the deposit will be returned to the buyer.
In Shariah Compliant setups we deal specifically with matters of Istisna’, where the commodity is still to come into existence. In this setup the since the requirement of payment is not set at day one, or upon deliverly, it is possible to set an upfron payment portion towards the commodity. Such a deposit would be permissible. If more information is required about Istisna’ transaction, please do mention and I will reply.
Wallahu A’lam
And Allah Ta’āla Knows Best
Mufti Faisal al-Mahmudi