Is Zakat obligatory on the frozen amount of IQD 3,500,0 (equivalent to USD 2,777) from the Lending Association, which my brother will receive to pay off part of a debt, and is Zakat to be paid once or for each year since 2014 until now?
is obligatory on whoever possesses money reaching the (85 grams of gold or 595 grams of silver) and a full lunar year (hawl) has passed on it. The debt must be settled upon the completion of the hawl.
Whoever participates in an employee association and pays installments but has not yet received their turn: if the installment reaches the nisab by itself or when combined with other money, and a full hawl passes on it, then Zakat is obligatory on it because it is a debt that is expected to be repaid. The existence of debt owed by him to others does not affect this, as debt is not deducted from Zakat.
If employees are unable to pay the association's installments, then there is no Zakat on what you have paid, because it is a debt owed by an insolvent person. However, for the period before this cessation, Zakat is obligatory if a full hawl has passed.
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