I have lend some money to my relative some years back with hoping to get back. Now I don’t think so I will get it back. Now I want to forgive that loan. In this case, do I have to calculate zakat for all the years I have been waiting?
In principle, a receivable is treated as a zakatable asset since it is expected to be received. However, if such a loan turns into a bad debt, then at that point, it stops being a receivable and is no longer treated as a zakatable asset.
[Please see further discussion on it in our Zakat Workshop in the following video]