Do I Need to Pay Zakat for the Expected Gift Money?

No, you do not need to pay Zakat on expected gift money until you receive it.

Here’s why:

• Zakat is due based on your wealth. It is calculated based on your current assets. This means that until the gift is in your possession, it does not count towards your Zakat calculation.
• Expected gift money is not subject to Zakat: If someone has promised to give you money but you haven't received it yet, you are not required to pay Zakat for that money. Zakat only applies to wealth that is actually in your hands.
• Possession matters: Zakat is due to the wealth you possess and can use for your purposes. Since you don’t yet own the gift, it isn’t included in your Zakat calculation.
• When the gift is received: Once the gift is given to you, and you hold it for a full lunar year, you will then be required to pay Zakat on it.
• Zakat applies to wealth held for a full year: If you receive the gift and keep it for a year, you will pay Zakat on it at the end of that period.

Thus, Zakat is not due on money you have not yet received as a gift. However, if you set aside money for a gift and it remains in your possession for a full lunar year, reaching Nisab, it becomes Zakatable.

If you're planning your Zakat, consider sharing a portion with those in need. Pakistan Sweet Home, a trusted orphanage in Islamabad, welcomes your generosity to brighten the lives of children with love, care, and hope.

And Allah knows best!

Other Zakat Questions You May Have

• Is Zakat Required on a Cheque?
• 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?