We lived in a house for almost 40 years. Then the roof needed a heavy repairing, but no money available. So we decided to sell part of the site In 2013., so we can pull down the house, and build a smaller house.
And we still have extra cash to buy government obligation.
My question: do I have to pay zakat for this government obligation?
Government issues a paper stating that they borrow from us for a period of, say, 5 years and will pay dividend a certain amount of money monthly until then. We call that paper as government obligation.
Money borrowed is no longer in your possession and therefore it is not zakatable.
Hajj Gibril Haddad