❀ Question ❀
If someone has 100,000 rupees in the bank and a year passes over it, but he owes a debt of approximately 70,000 rupees, is he still required to pay zakat on the full amount? Please explain in the light of the Qur'an and Sunnah. جزاكم الله خيرا✔ General Principle: Zakat on Wealth Reaching Nisab
Yes, zakat is obligatory on any wealth that:◉ Reaches the nisab (minimum threshold)
◉ A full lunar year passes over it
...regardless of debt. The correct scholarly opinion is that being in debt does not exempt one from paying zakat.
✔ Evidence from the Sunnah
The general ruling of zakat applies to all who possess wealth that meets the nisab. The Prophet ﷺ said:“Take from their wealth a charity by which you purify and cleanse them.”
[Sūrat at-Tawbah: 103]
Additionally, the Prophet ﷺ sent collectors to collect zakat but did not instruct them to inquire about the individual's debts. If debt were a valid exemption, it would have been mentioned explicitly.
✔ Scholarly Opinions
Sheikh Ibn Bāz رحمه الله said:"According to the Prophetic method, debt does not prevent zakat from being obligatory."
(Majmūʿ Fatāwā Ibn Bāz, 14/51)
Sheikh Ibn ʿUthaymīn رحمه الله was asked:
"If someone owns 100,000 Riyals but owes 200,000 Riyals, is zakat due?"
He replied:
"Yes, zakat is due on the amount he possesses. The evidence for zakat’s obligation is general and allows for no exemption."
(Majmūʿ Fatāwā Ibn ʿUthaymīn, 18/39)
✔ Immediate Loan Payments Before Zakat Is Due
If a debt is due for immediate repayment and is paid before the zakat year completes, zakat will only be due on the remaining balance, provided it still reaches the nisab.❀ Summary ❀
◉ Zakat is obligatory on any wealth that meets nisab and remains in possession for a lunar year—even if the owner is in debt.◉ If the debt is paid before the zakat year completes, zakat will be due on what remains, if it still meets the nisab.
◉ Pray to Allah ﷻ for help in repaying debts and blessing in wealth.
“O Allah, settle my debts and protect me from poverty.”
