Zakaat Implications While Owing Multiple People

In the enquired instance, Bilal became the owner of the property and he is indebted with an amount which he is liable to pay to his mother. After that, his mother made him her representative to give two shares (from the money he is liable to pay to his mother) to his siblings, one share to himself as a gift, and the remaining amount should go to the mother. For instance, Bilal bought the house for one million on credit; after that, his mother directed him to give 50% of the amount to his two siblings 25% each, then 25% of the amount is waived off from him as a gift to him, and 25% leftover should go to the seller (mother in our case).

Additionally, the gift becomes complete with taking possession; however, if the person who is given the gift does not take possession of the gift, the gifted item will still belong to the person who gives the gift. Since, the siblings did not take possession of the gift as; therefore, the gifted amount still belongs to the mother; however, this gift will be applicable in Bilal’s favour and it would be regarded as if he has bought the property for one million and afterwards mother pardoned 25% of the amount of the respected property which means the property only costed him 750,000.

Now we would like to answer your specific query: Meanwhile, since 750,000 still belongs to the mother, she will discharge the Zakat of that amount and she will also discharge the Zakat of the past 3 years. Subsequently, Bilal is indebted with 750,000 which he will pay in instalments; therefore, he will only deduct every year’s instalment from his Zakatable assets as a liability.