Zakat on a debt

Question

A person gave his jewellery, worth about one thousand rupees, to a close relative at his insistence, when he was in great distress. More than six years have now passed, but he was unable to return the jewellery or its value. A short while ago he passed away. The deceased’s relatives and children are at present not in a position to pay the value of this jewellery, so that there appears to be little hope. In this situation, is zakat wajib to be paid by the owner of the jewellery?

Answer

At present, paying zakat on it is not wajib. If it is not recovered, its zakat will lapse entirely. If it is recovered, paying zakat will become binding. If it is not recovered all at once, then upon receiving at least forty dirhams (one fifth of a nisab) zakat on that amount is binding, and paying zakat for all the past years will be binding.

Source: Fatawa Mahmudiyya

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