I have recently heard that it is obligatory to pay zakat on money that one has lent to others. Please can you clarify this.
Over the years I have lent money to various family members. I am uncertain of the total amount I have lent out. I am uncertain about when and if I will be repaid.
If it is true that I need to pay zakat on this money, please can you advise the best way to calculate the payable amount.
wa `alaykum salam,
You should have been paying 2.5% zakat for each amount lent from the very first year.