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Fiqh-us-Sunnah - 3.15
Hadith 3.15.1
Zakah on Debt
Debts are of two kinds: A debt which is acknowledged by the debtor with the willingness to pay it off, and A debt which is not acknowledged either because the borrower is insolvent or its payment is deferred.
In the first case, scholars have formed the following views:
Hadith 3.15.1
Zakah on Debt
'Ali, ath-Thauri, Abu Thaur, the Hanafiyyah, and the Hanbaliyyah hold that the creditor should pay zakah on the debt, provided he has received it from the debtor, in that zakah will be payable retroactively.
Hadith 3.15.1
Zakah on Debt
'Uthman, Ibn 'Umar, Jabir, Tawus, anNakha'i, al-Hasan, az-Zuhri, Qatadah, and ash-Shaf'i hold that the creditor should pay zakah on the value of a debt owed on time, even though he did not receive it yet, since he is eventually going to receive it and use it. It is similar to the zakah of any deposited amount.
Hadith 3.15.1
Zakah on Debt
'Ikrimah, 'Aishah, and Ibn 'Umar hold that no zakah is due on debt since it does not grow. It is similar to the case of acquired assets.
Hadith 3.15.1
Zakah on Debt
Sa'id ibn al-Musayyab and 'Ata ibn Abu Rabah hold that zakah should be paid for one year if the debt is returned to the creditors.
Qur'anic references:
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"When a person dies, his works end, except for three: ongoing charity, knowledge that is benefited from, and a righteous child who prays for him."
Prophet Mohammed (PBUH)
"The best of what a man leaves behind are three: a righteous child who supplicates for him, ongoing charity the reward of which reaches him, and knowledge that is acted upon after him."
Sunan Ibn Mājah
"Every day two angels come down from Heaven and one of them says, 'O Allah! Compensate every person who spends in Your Cause,' and the other (angel) says, 'O Allah! Destroy every miser.'"
Sahih Bukhari
