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Zakat On Stimulus Fund / Scholarships / Grants
Some universities offer scholarships to students for certain aspects (conferences, travel, or emergency related needs)
Should the percentage of Zakaat be 10% on this or 20% (since these are considered as scholarships).
For emergency related funds (for example Stimulus Funds), these might be considered under gifts without any effort at all so, would the Zakaat percentage be 20% or no zakaat would be applied on these kinds of funds?
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2 Replies
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Zakat On Stimulus Fund / Scholarships / Grants
updated 3 years, 12 months ago
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I was able to verify this with Hassan Ilyas sahab.
Stimulus is exempt from zakat because it’s not earning or production, rather it’s money given to you by the state in order to stimulate the economy. It doesn’t make any sense to pay a portion of it back to the state.
Grants and scholarships are also exempt from zakat because they’re not earning or production, but in fact the money is awarded to you by the state or some private entity based on your need or merit for a particular purpose.
In each case if any money is left over, that will end up in your bank account as your wealth. If you meet other conditions, you will pay the asset/wealth zakat on it at the rate of 2.5%.
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Jzk! That sounds quite reasonable.
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