4. Zakat on Loans Given and Shares Held
You are required to pay Zakat on all monies you have lent out to either family or friends. Loans are treated in the same manner as Cash (refer point 3 above). Any debts/loans you have outstanding should be deducted from any monies you have lent out to get your nett wealth.
Zakat is payable by you on loans you have given to your friends and relatives. It should be treated as Cash in Hand. You may deduct Loans Payable by you to arrive at the nett present value of your wealth.
2.5% Zakat is also payable on shares and other similar investments (e.g. Bonds, options, appreciating Collectables, Paintings etc), held for 12 months.