Should Zakat be Paid on Money that is Owed to Me?

Yes, you should pay Zakat on money that is owed to you if you are confident that you will receive it.

Here’s a breakdown:

• Pay Zakat on money owed to you if you are confident that you will receive it. This is known as "good debt," where you are certain of the repayment.
  
  
• Do not pay Zakat on money owed to you if you have doubts about the debt being repaid, such as when the debtor is unable or unwilling to pay.
  
  
• Zakat is only applicable to secure and likely-to-be-received assets. If there’s uncertainty, the owed money is not included in your wealth for Zakat calculation.
  
  
• Outstanding wages, dowry, inheritance, or trust-held assets are typically not considered part of your wealth for Zakat if they are uncertain or unpaid.

Additional Considerations:

• Loans for zakatable assets: If you have taken a loan to acquire assets subject to Zakat, you can deduct the loan from your overall wealth before calculating Zakat.
  
  
• Loans for non-zakatable assets: Loans taken for personal or consumer expenses cannot be deducted from your wealth for Zakat calculation.
  
  

Thus, pay Zakat on money owed to you only if you're confident about receiving it. Always consider the certainty of repayment in your Zakat calculation.

And Allah knows best!