An Introduction to Financial Sacrifice — Page 87
87 Q: Does Zakat apply on the amount which has been given as a loan? A: Zakat is not payable on the amount which has been given as a loan. However it will become payable one year after the said loan has been returned. Moreover money deposited in banks will not be considered as loan rather, it will be treated as savings. Q: What is the procedure for paying Zakat on an amount preserved in a bank or elsewhere? A: If the amount preserved is equal to or greater than the Ni sa b , then Zakat will become payable upon it after the completion of one year. Q: What are the conditions for Zakat on commercial goods? A: Zakat will be levied if an investment is equal to or more than the Ni sa b at the beginning of the year and remains so until the end. It will still be payable if it decreases during the year but is recovered by the end. If some investment is stolen or lost during the year, Zakat will not be levied on it, but it will be if the loss is recovered afterwards. In case of business partnership, it is incumbent to pay Zakat immediately after the year ends. If goods on which Zakat is payable are interchanged with other such goods, the Zakat will still remain binding. Money which is given as loan is called ' Mu‘allaq ' (Suspended) and Zakat will not be levied on it. Q: Is Chanda a substitute for Zakat? A: Chanda is no substitute for Zakat. Those upon whom Zakat is binding must fulfil this obligation. Q: Is Zakat levied on all the items as a whole, or is it to be levied separately on each?