Question
Do I have to give Zakat on money I have taken out as a loan from a family member.
I have not used this money as of yet but hope to use it within next 1-2 months.
If I was to deduct my loans I would be below nisab.
If I calculate including the borrowed money which I hold I would be above nisab.
بسم الله الرحمن الرحيم
الجواب بعون الملك الوهاب اللهم هداية الحق والصواب
Answer
While calculating Zakat, the amount that has been taken as a loan from someone (whether it has been used yet or is intended to be used) and its repayment is still due, this amount should be deducted from the total wealth. If the remaining wealth equals or exceeds the nisab and other conditions are met, then Zakat becomes obligatory; otherwise, it is not obligatory.
In this regard, it can be said that the payment of Zakat is not obligatory on the money that has been borrowed from someone.
Answered by: Mubashir Attari (AskMufti Scholar)
Verified by: Mufti Sajid Attari