Zakaat on loans that are owed to one

Answered according to Hanafi Fiqh by Muftionline.co.za

Q:

1. I have 1500 dollar cash with myself and my sister borrowed 500 euros from me 3 years before and my brother borrowed 500 dollars from me 3 years before. My husband borrowed 600 dollars from me 1 year before. So how should I calculate zakat for this money?

2. My husband has 15000 dollars in his account and almost 10000 dollars at home with his mother but the money he has at home is saving money from his salary every month he saves the money from his salary. What is the procedure for salary zakaat?

Bismillaah

A:

1. The principle regarding zakaat is that one will first add all one’s zakaatable assets. After adding one’s zakaatable assets, one will deduct all debts and liabilities and pay 2.5% of the remaining wealth. Loans that are owed to one will also be included in one’s zakaatable assets. However one has the choice of paying the zakaat of the loans that are owed to one from the wealth that is in one’s possession (before receiving the loaned monies) or one may pay the zakaat of the loans after receiving them. In this case one will have to pay the zakaat for all the previous years that the loans were outstanding.

2. Zakaat will have to be paid on that money.

And Allah Ta’ala (الله تعالى) knows best.

 

Answered by:

Mufti Zakaria Makada

Checked & Approved:

Mufti Ebrahim Salejee (Isipingo Beach)

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