Is zakat obligatory on a sum of 70,0 dirhams obtained through Tawarruq, a private car purchased for 38,0 dirhams, and a plot of land purchased in cash for trade for 120,0 dirhams, with monthly obligations amounting to 7,750 dirhams?

Banknotes and trade offers (such as land purchased for trade) must be calculated, and the Zakat on their total sum becomes due at the end of each year. Most scholars deduct the amount of debt from this total, and then Zakat is paid on the remainder if it reaches the nisab; otherwise, there is no Zakat. Ash-Shafi'i, in his new opinion, along with Ibn Baz and Ibn Uthaymeen, believe that debt should not be deducted from Zakat. Whereas Malik holds the view of deducting debt, unless the Zakat payer possesses an asset for personal use that he can do without. The more cautious approach is not to deduct debt and to pay Zakat on whatever you possess, absolutely.