QA-ID-0020
QUESTION
If you lend money to someone but they have not paid you back yet, who gives zakat on this money? The money has been used so not in anyone’s possession.
ANSWER
﷽
If you give someone a loan which they have not yet returned, the zakāt on this money is upon you, the lender. However, you can defer paying the zakāt on this loan amount until you receive the money back. Once you receive the amount, you will have to backdate the zakāt for the number of years it was lent out.
The easiest way is to include the loan amount annually in your total and give zakāt each year, even if the amount has not yet been received. This saves you having to backdate it when you actually receive it.
والله تعالى أعلم
And Allāh Knows Best
Muhammad Kalim Misbahi
