Do I pay zakat on balance owed?

Q: I sold my business for 7 million dollars. I was paid 4 million upfront. My question is on the 3 million that i do not have in my possession. Do i pay zakat on it each year? How would I pay it if I don’t have it? I get paid in installments.

A:As you seem to have presented it, the balance 3 million belongs to you. Should this be correct, you are responsible for the zakat that is due upon it for each year of its ownership.

You can calculate its amount and deduct it from the installments. The method of payment is up to you, but the zakat on the 3 million must be paid as long as you remain sahebe-nisab (possessor of nisab.)

Allah Certainly Knows Best.

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