Regarding Unpaid Money Owed by Someone as Zakat

Rufaida Tuba
From email

Question: I am owed a good amount of money by a person. For a long time he has kept saying he will pay, but he does not. There is no guarantee that I will get it back. In this case, do I have to pay zakat on this money too?

Answer: If there is a strong hope of getting the money back, you must pay zakat on it. If you do not pay every year, you must keep a record of the years. When the money is received, you must pay zakat for all the years in between. In this way, it may turn out that the whole amount goes to zakat. This is one of the reasons for the reward of giving a loan. A person gives up his own right to another.

If there is complete doubt about getting the money back, zakat is no longer due. In Sharia, such a loan is called “Dayn Da’if.” This means a debt that does not seem likely to be paid. If the money is received later, you must calculate and pay zakat for the years in between.

Answered by: Allama Mufti Mr. Ubaidur Rahman Khan Nadvi
Source: Jameul Fatawa, Islamic Fiqh and Fatwa Encyclopedia.
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