Do I Need to Pay Zakat on a Cheque?

No, Zakat is not due on a cheque unless it represents commercial earnings or guaranteed funds.

Zakat on a cheque depends on whether you have established physical or constructive possession of its value. Simply holding a cheque does not constitute ownership, as the funds are not accessible until the cheque clears. 

In general, Zakat is due only if the cheque represents commercial earnings or if it meets specific financial conditions.

When Zakat Is Not Required on a Cheque

You are not obligated to pay Zakat on a cheque in the following cases:

• If it was received in exchange for a personal item.
• If it was gifted or received as part of an inheritance.
• If it was given as payment for a service, such as tuition or professional work.

In these instances, the cheque does not represent commercial profit, so it is not subject to Zakat.

When Zakat Must Be Paid on a Cheque

Zakat is applicable if:

• The cheque was received in exchange for commercial goods.
• The cheque is a banker’s draft, which is considered a guaranteed payment.
• The cheque is signed by a Building Society, indicating secure funds.

Since these cases involve business transactions or guaranteed financial value, Zakat is due. Nowadays, giving Zakat via bank transfer or cheque has become easier, allowing you to support many in need more efficiently.

Clarification on Possession

When depositing a cheque, the funds become available after four working days, but they are not fully secured until six working days later. If used before clearance, the money might need to be returned. Hence, possession is not fully established until the cheque has cleared.

A cheque qualifies as constructive possession only if it represents a guaranteed value, such as a banker's draft. Therefore, Zakat eligibility depends on how and why the cheque was received.

And Allah knows best!

Other Zakat Questions You May Have

• Is Zakat Due on Money Saved for Hajj?
• Does Earned Interest Affect Missed Zakat Payments?
• Is Zakat Due on Funds Donated to a Waqf?
• Are Gift Cards with Cash Balances Subject to Zakat?
• Why is Zakat Required on Paper Money?
• Is Zakat Required on Money Stored in a Bank Account?