Fatwa ID: 06527

Answered by: Maulana Burhaan Rahman

Question:

If I waive off the debts of my debtors, do I still have to give zakat (of debt amounts) for previous years and current years?

In the name of Allah, the Most Gracious, the Most Merciful

Answer:

If you have waived off the debts of your debtors, you must give zakah on that. If the total amount of money you accumulate throughout the year (including the money borrowed etc.) reaches the minimum threshold (85 grams of pure gold’s worth) of zakah and more work out 2.5% of it and give it by the will of Allah.

In Rad Al-Muhtar it mentions:

(فَتَجِبُ) زَكَاتُهَا إذَا تَمَّ نِصَابًا وَحَالَ الْحَوْلُ، لَكِنْ لَا فَوْرًا بَلْ (عِنْدَ قَبْضِ أَرْبَعِينَ دِرْهَمًا مِنْ الدَّيْنِ) الْقَوِيِّ كَقَرْضٍ (وَبَدَلِ مَالِ تِجَارَةٍ) فَكُلَّمَا قَبَضَ أَرْبَعِينَ دِرْهَمًا يَلْزَمُهُ دِرْهَمٌ

(it’s necessary) to give zakah if the money he accumulates throughout the year reaches the minimum threshold, but he doesn’t need to give it immediately, but (when forty dirhams of the borrowed money) was lent (and exchange of trade for example), whenever he receives forty dirhams he must give one dirham towards zakah (2.5% basically) [Rad Al Muhtar Vol 2 Page 305]

So in your case think of it as money waiting to be paid (2.5% of it) but you haven’t got the amount yet, but as soon as you do and you know it reaches the minimum threshold or more, then zakah is incumbent upon you from it.

Only Allah knows best.

Written by Maulana Burhaan Rahman

Checked and approved by Mufti Mohammed Tosir Miah

Darul Ifta Birmingham