Answered by Shaykh Amjad Rasheed

I lent one of my relatives a sum of money. I was not sure whether or not he would return it. Then, he re-paid the debt. Am I obliged to pay zakat on it? How do I calculate the amount?

**Answer:**

If the amount of the debt reaches the *nisab* (the minimum that necessitates *zakat*), and a full lunar year has elapsed, then it is a debt that it is obligatory to pay *zakat* on for every lunar year. However, every year, one subtracts the amount of *zakat* that was due for the preceding year.

For example, if the debt amounted to 10,000 Dinars and the debt went on for 5 years, he pays 250 Dinars for the first year (which is the * zakat* payable on 10,000 Dinars). Then, he pays 243.75 Dinars for the second year (the *zakat* payable on the [remaining] 9750 Dinars, because one subtracts the 250 Dinars that was the *zakat* payable for the 1st year and so on).

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