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The question

Is zakat obligatory on a clothing store if its capital is a debt owed to my relatives?

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Source: FtawySummary from Ftawy's records · added here Sep 2, 20261 min readAlso available in العربية
The answer

If the enquirer has a debt that he has not yet repaid, the majority of scholars hold that debt prevents the obligation of on hidden assets, such as trade goods. If the value of the trade goods exceeds the debt and the surplus reaches the and a hawl (a full lunar year) has passed over it, then zakat is obligatory on this surplus. However, if the value of the trade goods after deducting the debt does not reach the nisab, then there is no zakat due from the enquirer.

Summary from Ftawy's records · added here

Reviewed by El Fatwa's sharia committee.

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Ftawy
Original fatwa ID
132252
Added here
. This is when the answer was added to El Fatwa, not the fatwa's date.
Text
Summary from Ftawy's records, reviewed by El Fatwa's sharia committee.
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Read the full answer on Ftawy