Releasing a debtor from a debt as zakat

Question

Zayd owes a debt to ‘Amr, and Zayd is at present entitled to zakat. If ‘Amr says to Zayd, “I have given you the sum,” can ‘Amr in this case make the intention of zakat or not?

Answer

Releasing a debtor from a sum that is owed as a loan is not sufficient for paying zakat. However, if the debtor is given the zakat money and it is then taken back from him in repayment of the loan, that is valid. If zakat is given to some poor person entitled to it under the name of a loan, the zakat is still discharged, but one should not then take it back from him.

Source: Fatawa Mahmudiyya

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