The third category does not exempt wealth from zakat if a year has not passed since the debt was incurred, whether or not the debtor has nonmonetary assets. Once a year has passed, it does exempt the wealth, unless he has nonmonetary assets against which to allocate the debt. This is debt incurred in connection with the zakatable wealth in his possession, whether through a loan or a sale.

An example involving a loan is someone who has ten dinars, borrows another ten, and trades with the twenty for a year. He pays zakat on the twenty if he has nonmonetary assets sufficient to cover the ten dinars he owes on the loan. If, however, he retains his ten dinars for ten months, then borrows another ten and trades with the twenty until the end of the year, no zakat becomes due on them until a year has passed from the day he borrowed the additional ten—even if he has nonmonetary assets sufficient to cover the loan.

An example involving a sale is someone who has ten dinars and receives another ten as advance payment for goods to be delivered later, then trades with the twenty for a year. He pays zakat on the twenty if he has nonmonetary assets sufficient to cover the ten dinars he owes under the advance-payment sale. If, however, he retains his ten dinars for ten months, then receives another ten as advance payment for goods and trades with the twenty until the end of the year, no zakat becomes due on them until a year has passed from the day he received the ten dinars as advance payment—even if he has nonmonetary assets sufficient to cover the debt arising from that sale.

Ashhab treats outstanding zakat debts and other debts alike. In his view, therefore, debts fall into two categories in this respect. It has also been said that debt exempts monetary wealth from zakat in all circumstances, whatever the nature of the debt. Even if the debtor has nonmonetary assets, he does not allocate the debt against them. This follows the apparent meaning of the aforementioned report from ‘Uthmān ibn ‘Affān, since he neither distinguished outstanding zakat debts from other debts nor stipulated that the debtor have no nonmonetary assets. Success comes from Allah.

Section

Unlike prayer, zakat does not require that a person have reached puberty or be of sound mind. The evidence for this is the statement of Allah, Mighty and Majestic:

“Take charity from their wealth to purify and sanctify them thereby.” [al-Tawbah: 103]

Purification and sanctification are possible without either condition, so the verse applies generally to young and old, those of sound mind and those who are insane. The Prophet’s statement (peace and blessings be upon him), “Allah commanded him to collect zakat from the wealthy and return it to the poor,” likewise applies generally to every wealthy person, young or old, of sound mind or insane. It must therefore be understood in its general sense, since nothing has been transmitted that