Question: I have lent some money to a close relative who is going through tough times in his life. I want to know if I am liable to pay Zakah on the money I have lent?
    Answer: There can be three situations regarding the lent money:

    i. The borrower is returning the money in instalments.
    ii. The borrower is due to return the total money at a fixed future date.
    iii. The borrower has no intention of returning the money and his intentions have become clear.
 
    In the first two cases, Zakah is to be given by you when you pay it on the date you have fixed for Zakah deduction.
    As far as the third case is concerned, the Shari‘ah has not given any explicit ruling in this matter. One must adopt the course that seems more in accordance with the spirit of Islam and its directives. Since in Islam Zakah on wealth is basically imposed on the wealth that one possesses, it seems to me that what you will never have should not be liable to Zakah.