Should Zakat Be Paid on Child Benefits?

Yes, if child benefits remain in your control, they are subject to Zakat. 

However, if they are fully given to the child and the child has complete ownership and control, then Zakat is not required.

When you receive child benefits, these funds legally belong to you unless explicitly transferred to your child. On your Zakat anniversary, you must calculate all your cash and liquid assets, including salary, rental income, and child benefits, as part of your overall wealth.

The following are the key points to consider: 

• Legal Ownership: Child benefits are intended to support your children, but unless fully transferred to them, they remain in your possession and are part of your assets.
• Zakat Obligation: Any money under your control, regardless of its source, must be included in your Zakat calculation.
• Nisab Consideration: Including child benefits in your total wealth helps determine if you meet the nisab of Zakat.
• Transfer of Ownership: If you place the money in a separate account under your child’s name, and they have full control over it, then Zakat is not required on that amount. However, if you still manage or use the funds, they remain part of your Zakatable wealth.
• Financial Accountability: Properly tracking your assets ensures accurate Zakat calculation and fulfills your religious duty with integrity.

Thus, If child benefits remain under your control, they are part of your Zakatable wealth. However, if the money is fully given to the child and managed by them, then no Zakat is due.

Organizations like Pakistan Sweet Home play a key role in supporting orphaned children. By sponsoring an orphan, you directly contribute to their well-being and future, allowing them to thrive and feel a sense of belonging.

And Allah knows best!

Other Zakat Questions You May Have

• Is Zakat Required on Mutual Funds?
• Is Zakat Due on Business Production Assets?
• Is a Creditor Required to Pay Zakat on a Loan?
• Is Zakat Required on Sukuk al-Ijarah?
• Is Zakat Obligatory on Illegitimate Earnings?
• Can Unlawful Earnings Be Purified by Giving Zakat?