(Quection No:5509)I just wanted to have some clarification regarding ZAKAT.
Mu' meneen Brothers and Sisters,
As Salaam Aleikum wa Rahmatullahi wa Barakatuh. (May Allah's Peace, Mercy and Blessings be upon all of you)
One of our brothers/sisters has asked this question:
Dear brother Burhan,
I just wanted to have some clarification regarding ZAKAT. If a person has taken interest free loan and he is returning it as monthly installments (as agreed by both parties) whereas he has the equal amount with himself and due to certain requirements (which may arise in near future) he doesnt return the total amount of loan. In this situation is he entitled to pay zakat on that amount?
Your brother in Islam.
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Zakah on loan
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The zakah dues are only payable on ones nett excess wealth; thus if one has taken a loan, the wealth does not belong to him but belongs to the one who has given the loan, thus it is the one who has given the loan who will be liable to pay the zakah.
For example, if one were to take a loan for $1,000.00, and one has at the time of determining ones zakah, paid two installments of $100.00 each. Thus the one who gave the loan is liable to pay zakah on his excess wealth, plus the $800.00 which he still has to receive from this loan, and the one who took the loan has to pay zakah only on his nett excess wealth which has been in his possession for one full calendar yearie. his total assets minus his total liabilities.
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