Tafsir of verse 4
Al-Mukhtasar
When you, O believers, face those disbelievers who wage war against you then strike their necks with your swords, and persist in fighting them until you subdue them and eradicate their power. Once you have subdue them, tie the chains of the captives. When you capture them you have the option, as per the demand of interests, of being graceful to them by releasing them for no ransom, ransoming them for wealth or something else, killing them, or enslaving them. Continue fighting and capturing them until the war ends by the disbelievers’ accepting Islam or by your entering into a treaty with them. The mentioned trial of the believers with the disbelievers, the alternation of fortunes and the victory of one over the other, is Allah’s decision. If Allah willed to defeat the disbelievers without a fight, He would have done so, but He ordained striving in His path to test some of you with others. He tests who of the believers fights and who doesn’t. He tests the disbeliever with the believer: If the believer is killed he enters Paradise and if the believer kills him he enters the fire. Those who are killed in Allah’s path, Allah will never nullify their deeds.
Tafsir of the whole Surah Muhammad
Other translations of verse 4
When you encounter the disbelievers [in battle], strike [their] necks until you have thoroughly subdued them, then bind the captives firmly2. Later [you may free them] as a favor3 or for ransom until the war comes to an end4. That [is Our command], if Allah had willed, He could have subjected them to punishment, but [He ordered you to fight] to test some of you by means of others. Those who are killed in the way of Allah, He will never render their deeds void.
Notes
[2] i.e., seize those remaining fighters as captives.
[3] i.e., release them without taking any ransom.
[4] lit., until the war lays down its burdens, its armor.
So, when you meet (in fight - Jihâd in Allâh’s Cause) those who disbelieve, smite (their) necks till when you have killed and wounded many of them, then bind a bond firmly (on them, i.e. take them as captives). Thereafter (is the time) either for generosity (i.e. free them without ransom), or ransom (according to what benefits Islâm), until the war lays down its burden. Thus [you are ordered by Allâh to continue in carrying out Jihâd against the disbelievers till they embrace Islâm and are saved from the punishment in the Hell-fire or at least come under your protection], but if it had been Allâh’s Will, He Himself could certainly have punished them (without you). But (He lets you fight) in order to test some of you with others. But those who are killed in the Way of Allâh, He will never let their deeds be lost.2
Notes
[2] (V.47:4) See the footnote of (V.2:190) and (V.9:20).
Now when ye meet in battle those who disbelieve, then it is smiting of the necks until, when ye have routed them, then making fast of bonds; and afterward either grace or ransom till the war lay down its burdens. That (is the ordinance). And if Allah willed He could have punished them (without you) but (thus it is ordained) that He may try some of you by means of others. And those who are slain in the way of Allah, He rendereth not their actions vain.
Therefore, when ye meet the Unbelievers (in fight), smite at their necks; At length, when ye have thoroughly subdued them, bind a bond firmly (on them): thereafter (is the time for) either generosity or ransom: Until the war lays down its burdens. Thus (are ye commanded): but if it had been Allah's Will, He could certainly have exacted retribution from them (Himself); but (He lets you fight) in order to test you, some with others. But those who are slain in the Way of Allah,- He will never let their deeds be lost.
So when you meet in battle those who disbelieve, then smite the necks until when you have overcome them, then make (them) prisoners, and afterwards either set them free as a favor or let them ransom (themselves) until the war terminates. That (shall be so); and if Allah had pleased He would certainly have exacted what is due from them, but that He may try some of you by means of others; and (as for) those who are slain in the way of Allah, He will by no means allow their deeds to perish.
So when you meet the ones who have disbelieved, then it is striking of the necks until, when you have subjugated (Wrongly understood by Arberry and others to mean "slaughter") them, then uphold the bonds; (i.e., take them captives) then (it is) either being bounteous (i.e., "showing" bounty by setting them free) hereafter (to them), or (exacting) ransom, until the war lays down its encumbrances. So it shall be; and if Allah had (so) decided, He would have vindicated Himself upon them; but that He may try some of you by means of others (Literally: by means of some "others"). And the ones who have been killed in the way of Allah, then He will never send their deeds into error.