A: Receivables, or money owed to you, can be divided into two common categories: strong and weak.
Strong receivables include:
• Money which you have given to others to borrow
• Outstanding balance from the sale of commercial goods
Zakat must be paid for every year a strong receivable is outstanding. One may pay Zakat before receipt of the strong receivable. However, if one did not pay, upon receipt, they must pay Zakat for all previous years.
Weak receivables include:
• Outstanding invoices for the sale of personal items
• Outstanding wages, fees, remuneration of services
• Outstanding Mahr (Dower) owed to the wife
• Outstanding inheritance shares
Zakat is not binding on weak receivables for the years they are outstanding.
Approved by Mufti Amjad 13th August 2023