Calculating Zakaat on a loan
Question
Mufti, i have × amount of dollars, (+-190k rands). I needed to renovate my house, so a family member said take money from us (150k) and dont change the dollars, when we need it u can give it to us. For now keep it by u. Now my question is when i pay zakaat. Do i pay for all the dollars i got, or should i minus the amount i owe and work out my zakaat for balance of the money.
Answer
In the enquired case, if R150k was given to you in exchange for dollars valued at R190k, the dollars valued at 190k does not belong to you. It belongs to the family member that had given you R150k in lieu of the dollars valued at R190k.
Therefore, it will not be your responsibility to discharge the Zakaat due on the dollars. It is the responsibility of your family member to whom it belongs to discharge the Zakaat due on the dollars. However, you will be responsible in discharging the Zakaat due on the R150k or the remainder that which is in your possession.
And Allah Ta’ala Knows Best
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