Zakat

[mercyofAllah]

If a person has lent some money to someone and if he doesn't seem to return it back while the person would be happy getting it back, in that case, should one still has to pay zakat on that money or is it enough to pay zakat after getting the money back?
jazaakumAllahu khayra
wassalam

[abuhajira]

Question:

If you extend credit when you sell merchandise, is you whole debtors book zakatable? Obviously theres a chance of default from certain debtors. Whats the shariah rulling on this?

Answer:

In the Name of Allah, the Most Gracious, the Most Merciful.

As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.

Zakat becomes compulsory(fardh) according to one’s financial condition. If one has the nisāb amount of zakatable assets after deducting the liabilities then zakat is compulsory.

Debts receivables are treated as one’s potential wealth and regarded as a strong debt as one is certain of receiving payment of such a debt.

Zakat on strong debts is governed by the following laws:

a. At the time of calculating zakat if the debt is not received then zakat is not obligatory on that debt.

b. Once the payment of the debts is one-fifth or more of the nisāb then zakat becomes due on that amount received. The zakat will be calculated for the present year as well as the previous years.

c. If someone receives the complete debt in a lump sum, then zakat will be paid on the whole amount for that year and the previous years. [1]

d. It is permissible to discharge zakat on debt receivables before the zakat becomes due on it. In essence, if one pays 2.5% on the debt receivable every year before receiving payments, then one would not have to pay zakat for the past years upon receiving payments.

e. If the credit extended becomes a bad debt (i.e there is no hope of receiving it) then there is no zakat wajib on such debt.[2]

And Allah Ta’āla Knows Best

Mufti Faisal bin Abdul Hameed
Canada
Checked and Approved by,
Mufti Ebrahim Desai.

[1] الدر المختار وحاشية ابن عابدين (رد المحتار) (2/ 306)

وَأَمَّا إذَا كَانَتْ الْأَلْفُ مِنْ دَيْنٍ قَوِيٍّ كَبَدَلِ عُرُوضِ تِجَارَةٍ، فَإِنَّ ابْتِدَاءَ الْحَوْلِ هُوَ حَوْلُ الْأَصْلِ لَا مِنْ حِينِ الْبَيْعِ وَلَا مِنْ حِينِ الْقَبْضِ، فَإِذَا قَبَضَ مِنْهُ نِصَابًا أَوْ أَرْبَعِينَ دِرْهَمًا زَكَّاهُ عَمَّا مَضَى بَانِيًا عَلَى حَوْلِ الْأَصْلِ

بدائع الصنائع في ترتيب الشرائع (2/ 10)

وَجُمْلَةُ الْكَلَامِ فِي الدُّيُونِ أَنَّهَا عَلَى ثَلَاثِ مَرَاتِبَ فِي قَوْلِ أَبِي حَنِيفَةِ: دَيْنٌ قَوِيٌّ، وَدَيْنٌ ضَعِيفٌ، وَدَيْنٌ وَسَطٌ كَذَا قَالَ عَامَّةُ مَشَايِخِنَا أَمَّا الْقَوِيُّ فَهُوَ الَّذِي وَجَبَ بَدَلًا عَنْ مَالِ التِّجَارَةِ كَثَمَنِ عَرَضِ التِّجَارَةِ مِنْ ثِيَابِ التِّجَارَةِ، وَعَبِيدِ التِّجَارَةِ، أَوْ غَلَّةِ مَالِ التِّجَارَةِ وَلَا خِلَافَ فِي وُجُوبِ الزَّكَاةِ فِيهِ إلَّا أَنَّهُ لَا يُخَاطَبُ بِأَدَاءِ شَيْءٍ مِنْ زَكَاةِ مَا مَضَى مَا لَمْ يَقْبِضْ أَرْبَعِينَ دِرْهَمًا، فَكُلَّمَا قَبَضَ أَرْبَعِينَ دِرْهَمًا أَدَّى دِرْهَمًا وَاحِدًا.

وَعِنْدَ أَبِي يُوسُفَ وَمُحَمَّدٍ كُلَّمَا قَبَضَ شَيْئًا يُؤَدِّي زَكَاتَهُ قَلَّ الْمَقْبُوضُ أَوْ كَثُرَ.

فتاوى محمودية ج 14 ص98 – مكتبة محمودية

[2] احسن الفتاوى ج 4 ص 275 – ايج ايم سعيد

[mercyofAllah]

Did I understand right that until one gets the money in hands, he does not have to pay the zakat for that?

[mercyofAllah]

When giving zakat to a relative is more rewardable, what is the criteria for a relative to receive zakat, yaani how to say how poor a relative is based on which the zakat can be given to the person?

[abuhajira]

Did I understand right that until one gets the money in hands, he does not have to pay the zakat for that?

Once you have received 1/5th of the money in hand, then you have to start counting that money in your zakatable assets.
If you receive less than that, then you do not count the money as zakatable.

Wallahu A'lam

[abuhajira]

When giving zakat to a relative is more rewardable, what is the criteria for a relative to receive zakat, yaani how to say how poor a relative is based on which the zakat can be given to the person?

Here are some guidelines. Remember that you cannot give zakat to family relative who are sayyeds.

Giving zakāh to one’s poor family (brother, sister etc.) is commendable and liable for extra reward. It is mentioned in a hadīth that by giving charity to one’s relatives one receive double a reward, one reward for giving charity and the other for showing kindness to them. [1]

For example, If your brother is poor and needy and does not have money equivalent to the amount of Nisaab, you may give him Zakaat. You will receive two rewards for this, one for discharging the Zakaat and the other for assisting a family member. [2]

Essentially The criteria of family people who are poor to be eligible to receive the zakat are same as any other person. ... ie A Miskeen is one who does not possess wealth or property to the value of nisab, thereby being eligible to receive zakat. [3]

It is impermissible for the wife to give zakat to the husband and vice versa. (Badai’ Al-Sanai’, vol 2, pg 144, Dar Al-Ihya al-Turath / Aap Ke Masaail, vol 3, pg 395) [4]

Wallahu A'lam

[mercyofAllah]

I understand the nisab level of gold and silver. But when it comes to money zakat is given on one's annual saving. I was under the impression that even if I have Rs. 1000 or Rs. 10000 as savings, I have to pay the zakat as per that amount. Now did I understand right if a family doesnt have any savings nor any gold or silver above nisab level, one can give them zakat?

Also as far as syed, say there is a syed woman whose husband is sheikh and has a son (about 14-15 years old) and this woman is a widow. Cant one give zakat to her? She can be a syed but her son is not?

[mercyofAllah]

Also comparatively giving zakat to family is more rewarding or to those who fight in path of Allah SWT or sponsoring for those seeking deeni ilm? Out of all, which is more rewarding?

[abuhajira]

I understand the nisab level of gold and silver. But when it comes to money zakat is given on one's annual saving. I was under the impression that even if I have Rs. 1000 or Rs. 10000 as savings, I have to pay the zakat as per that amount. Now did I understand right if a family doesnt have any savings nor any gold or silver above nisab level, one can give them zakat?

Yes you can. Nowadays the easiest method to calculate zakat is calculate the cash value of your zakatable assets. for example you have gold, silver, cash, short term debts, etc. calcualte the value of all and then minus the liabilities and check against the nisaab level.

Also as far as syed, say there is a syed woman whose husband is sheikh and has a son and this woman is a widow. Cant one give zakat to her? She can be a syed but her son is not?

The child follows the lineage of his father and not that of the mother. Since, the father is a Shaikh, the child will be a Shaikh and not a Syed. [i] Hence, the money will be zakat for the child and if the mother takes benefit from it, it will be sadaqah for her from her son.

Wallahu A'lam

[abuhajira]

Also comparatively giving zakat to family is more rewarding or to those who fight in path of Allah SWT or sponsoring for those seeking deeni ilm? Out of all, which is more rewarding?

I am not sure, however hadeeth refers to money spent on one's family having double reward. I will have to search for the exact hadeeth but its mentioned in Tirmidhi Shareef. Hence, my inclination would be towards that.

At the same time if you can, spend in all these avenues to gain variety in rewards as well.