Is zakat obligatory on a person who borrowed money and bought livestock with it, and a year has passed on both the money and the livestock, knowing that he owns 96 goats and 52 sheep? Does he pay zakat on the livestock, or the borrowed money, or both?

Zakat becomes obligatory on money after one Hawl (lunar year) has passed from the day it was acquired and before livestock is purchased with it, at a rate of 2.5% after deducting debts. Zakat is due if the money reaches the Nisab (minimum threshold) by itself or when combined with other cash or trade goods.

If livestock is purchased before the Hawl is complete, then there is no Zakat on the money. The livestock will then have a new Hawl, and Zakat will be due on it if it is sā’imah (grazing livestock).

However, if the livestock is considered ‘urūḍ tijārah (trade goods), then Zakat is obligatory on it, even if it is fed [rather than grazed]. If its value reaches the Nisab and one Hawl passes over it, then one-fourth of one-tenth (2.5%) is due on it after deducting debts.