How much is the Zakat on a bank deposit of EGP 340,000, taking into account a murabaha withdrawal of EGP 150,000 with a monthly payment of EGP 1270?

The enquirer has a deposit and an outstanding Murabaha debt. The fatwa (definition) adopted by us is that of Imam Malik, which states: the debt is deducted from the wealth subject to zakat (definition), unless the zakat-payer has other surplus funds beyond his needs, in which case these funds are used to offset the debt, and his existing wealth is then subject to zakat.

Accordingly, if the enquirer has other surplus funds beyond his needs, and these funds are equal to or greater than the value of that debt, then the debt becomes as if non-existent, and the entire deposit is subject to zakat. If the funds are less than the debt, then an amount from the debt equivalent to these funds is cancelled, and the remainder is deducted from the deposit. If he has no other surplus funds beyond his needs, then the entire debt is deducted from the deposit, and the remainder is subject to zakat.

The amount due for zakat from the deposit of 340,000: 1. According to the first scenario (other funds cover the debt): 8,500. 2. According to the third scenario (no other funds): 4,750. 3. According to the second scenario (other funds less than the debt): As per the detailed explanation above.

Note: Payments already made towards the installments are not counted as part of the debt. Rather, the total remaining amount of outstanding installments is what is counted.