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Zakat on Debt That Is Anticipated To Be Received

Answered as per Hanafi Fiqh by DarulIftaBirmingham

Answered by: Maulana Yūsuf Badāt

Question:

If I helped someone pay off their debt but they did not physically ask me to pay it – (he is currently in rehab) – then do I pay zakāt on that amount even though I might not get the money in the future. if he is able to pay me back over time, I will take it otherwise not.

In the name of Allah, the Most Gracious, the Most Merciful

Answer:

The ruling in regards to money that is anticipated to be received (such as a borrowed amount that is payable to you or the amount owing from a sale) is zakātable. However, you have the option to either pay it whenever your year comes to an end or after receiving the amount. It must be noted that if you are paying zakāt for the amount once it is received, zakāt is payable for all previous years it was not paid for. – (See: Rad Al-Muḥtār, Vol 2, Page 305, Dār Al-Fikr)1

Only Allāh knows best

Written by Maulana Yūsuf Badāt

Checked and approved by Mufti Mohammed Tosir Miah

Darul Ifta Birmingham

1 وَاعْلَمْ أَنَّ الدُّيُونَ عِنْدَ الْإِمَامِ ثَلَاثَةٌ قَوِيٌّ وَمُتَوَسِّطٌ وَضَعِيفٌ فَتَجِبُ زَكَاتُهَا إذَا تَمَّ نِصَابًا وَحَالَ الْحَوْلُ لَكِنْ لَا فَوْرًا بَلْ عِنْدَ قَبْضِ – كتاب الدر المختار وحاشية ابن عابدين رد المحتار ج٢/ ص ٣٠٥ دار الفكر

This answer was collected from DarulIftaBirmingham.co.uk, which is run under the supervision of Mufti Mohammed Tosir Miah from the United Kingdom.

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