How is the Zakat for an olive harvest that has reached the Nisab to be paid if the father relied on selling a portion of it to settle debts?

Scholars have differed on whether debt prevents the obligation of Zakat or not, holding various opinions. Those who stated that it does prevent Zakat also differed on whether this applies specifically to internal wealth (cash and trade goods) or if it includes external wealth (livestock, grains, and fruits).

Ibn Qudamah mentioned two views: 1. Debt does not prevent Zakat on external wealth, because the collector does not inquire about debt. 2. Debt prevents Zakat on all types of wealth (external and internal). This is the view of Abu Hanifa and some of the Salaf, who argued that a debtor is in need, and Zakat is taken from the wealthy. They also cited the action of Uthman ibn Affan, may Allah be pleased with him.

Therefore, if debt prevents Zakat on all types of wealth, then there is no Zakat on the crop sold to repay the debt. However, if the second view is considered more cautious, then Zakat (one-tenth or one-twentieth, depending on the irrigation method) must be paid from the olives or olive oil. The majority of scholars prohibit giving the value in cash.