Zakat on scholarship money ?
My kids are UC students and they got scholarships & grants to pay their tuition fees and other expenses. They have some remaining funds in their individual accounts, do I have to pay zakat on it? Answer: ﺑﺴﻢ اﷲ اﻟﺮﺣﻤﻦ اﻟﺮﺣﯿﻢ In the name of Allah, the Most Gracious, the Most Merciful
Zakat is necessary for a sane, muslim adult who possesses wealth which reaches nisab (after deducting one’s liabilities), and one lunar year passes over that wealth. In addition, the wealth is surplus to their basic necessities of life. Hence, if your children meet the above mentioned criteria in terms of the money they possess by way of scholarships and grants, zakat will be obligatory for them. Nevertheless, if you decide to pay on their behalf with their permission, it would be permissible.
(Sharhul Wiqaya: v. 2, p. 200-201 [Al-Warraq])
Only Allah knows best
Written by Maulana Mohammad Ahsan Osmani Checked and approved by Mufti Mohammed Tosir Miah Darul Ifta Birmingham