Zakat on property payment
I am buying a flat and the sale have been agreed. Is the money in my account for this flat treated as account payable as we have agreed to pay this amount upon completion of sale documents. Is zakat payable on this money or not?
Wa’alaykum as Salam wa rahmatullahi wa barakatuhu,
If you have reached your due day for Zakah and the money is still in your account, Zakah will be compulsory on those funds. Even though it is already agreed, the buying of the house is a future sale, and hence it is not regarded as a debt payable.