Zakat is also wajib on the money that is owed to a person by his debtors. Debts are of three types:

The First Type: Loaned Wealth and Debts
The person loaned some gold, silver or money, or sold some tradeable goods to another person. He is owing this money and only repays his debt after a year or two. If whatever he loaned is equal to or more than the nisab, zakat will be wajib for all the years that he had loaned the money.

He did not repay the debt at once, but in instalments. The moment he pays an amount equal to the value of 128.304 grams of silver, zakat will become wajib on him. But if the person repays the value of 128.304 grams of silver in instalments as well, zakat will only become wajib on the completion of this amount. Each time that this amount is paid, zakat on it will have to be given. Whenever the person gives the zakat, he will also have to pay for all the previous years in which the zakat was not paid.

If the money owed is less than the nisab, zakat will not be wajib on the person. However, if the person has some other wealth upon which zakat is necessary, then this wealth should be added to the money owed. If, after adding them together, they equal the nisab, zakat will be wajib on the total amount.

The Second Type: Long-Overdue Personal Sales
A person did not loan any cash nor did he give (on credit) any goods for trade. Instead, he sold something which was not originally purchased for re-sale, e.g. he sold some of his personal clothing or some household goods, and the person is still owing him the money for these items. In addition to this, the amount that he is owing is equal to or more than the nisab and he only repays this amount after several years.

Zakat will be wajib for all the years. If he does not repay this debt at once, but repays it in instalments, then as long as the paid up instalments do not reach the current nisab of silver or gold, zakat will not be wajib on the amount that he collected. The moment an instalment reaches the current nisab, zakat becomes wajib for all the years in which zakat was not paid.

The Third Type: Zakat on Mahr
The husband owes his wife the mahr (dowry) which had been stipulated at the time of marriage. He only pays this mahr after several years. zakat will only be calculated from the day that she actually receives her mahr.

Zakat for the previous years will not be wajib. If the mahr remains with her for a period of one year after having received it, zakat will become wajib on her upon the expiry of one year. But if she does not have the mahr (for example, if she spends it), zakat will not be wajib.

Prepayment, Loss, and Obligation
A rich person upon whom zakat is wajib gives his zakat before the expiry of one year and does not wait until the end of the year. This is permissible and his zakat will be considered to be fulfilled. But if the person is not rich and envisaged receiving some money in the near future, and therefore gave his zakat before the expiry of the year, this zakat of his will not be considered to be fulfilled. When he receives the money and thereafter a year passes, he will have to give his zakat again.

It is permissible for a rich person to give zakat for several years beforehand. But if his wealth increases in any given year, he will have to give zakat for the extra wealth that he obtained.

A person has R1000 over and above his basic needs. He also envisages receiving another R1000 from somewhere. Before the expiry of the year, he gives zakat for the total R2000. This is also permissible. However, if his money gets less than the nisab at the end of that year, then zakat will not be wajib on him and the zakat which he had already given will be regarded as a voluntary charity (sadaqah-e-naafilah).

A person had some wealth for a full year but before he could give the zakat, all his wealth was stolen or disappeared in some other way. He will be absolved from giving zakat. But if the person gives his wealth away or causes it to be destroyed in some way or the other, then he will not be absolved from giving the zakat. It will remain wajib upon him.

After the expiry of the year, a person gave all his wealth in charity. zakat will not be wajib on him.

A person had R2000. After the expiry of one year, R1000 was stolen or he gave it in charity. He will be absolved from giving the zakat of R1000. He will now only have to give zakat for R1000. However, if the person gave the R1000 to someone or spent it, zakat on the full amount will be wajib.