Is Zakat due on an invested amount while there are debts to the state and to a commercial institution in monthly installments, bearing in mind that these debts exceed the invested amount?
The majority of scholars are of the opinion that debt precludes the obligation of on hidden assets (such as gold, silver, cash, and trade goods) if it consumes the entire wealth or reduces it below the **. This is the preponderant opinion, based on evidence including the action of Uthman, may Allah be pleased with him. However, if the debt does not reduce the wealth below the *nisab*, the debt is deducted, and Zakat is paid on the remainder after it reaches the *nisab* and a full year has passed.
Accordingly, if your debts are more than the invested amount, then no Zakat is due on it from you. Unless you have other wealth in excess of your basic needs (non-zakatable, such as real estate or vehicles) sufficient to pay off the debt, then allocate it against the debt so that Zakat becomes due on the invested wealth. And likewise, if it is sufficient to pay off part of it, such that the portion of the invested wealth that remains reaches the *nisab*. If these other assets do not exist, then no Zakat is due on you.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
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- Summary from Ftawy's records, reviewed by El Fatwa's sharia committee.
- Read the full ruling
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