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Zakat on merchandise given on credit

Answered as per Hanafi Fiqh by Jamia Binoria

What is the law for Zakat on merchandise given on credit that is received before the passing of one’s Zakat year and its payment is made afterwards?

الجواب حامدا و مصلیا

Regarding business transactions, the principle for giving Zakat due on merchandise given in credit is that on the day in which Zakat is due one must calculate the value of all merchandise on which Zakat is payable, including that given on credit, then give 2.5% of it in Zakat. However, for merchandise given on credit, one may also delay paying its Zakat until its payment is made instead of giving it on the day Zakat is due.

This Q&A was indexed from the official english fatwa portal of Jamia Binoria. It is an Islamic educational institute in Karachi, Pakistan.

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