Question:
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.
Thank you.
Answer:
Money borrowed is no longer in your possession and therefore it is not zakatable.
Hajj Gibril Haddad
