Darul Ifta Ibn Masood

Zakaat on long term debts

· 14 Shaʻban 1444 AH1 min readEnglish

Question

If you have a loan of R10 million and paying it off at R20 000 a month, how do you calculate your Zakaat?

Answer

If a person is owing R10 million (for a loan that he has taken) and is paying R20 000.00 a month towards the debt, then, in total, he will be paying R240 000.00 a year. When calculating Zakaat, he will deduct the total installments for the year of R240 000.00, and pay Zakaat on the remaining Zakaatable assets that he owns.

For example, the debtor possesses cash, investments, jewellery, etc. to the value of R1 million. He will deduct the yearly repayment of R240 000.00 and pay Zakaat on the remainder which is R760 000.00.

Answered by
Mufti Mohammed Desai
View original Compare with other Darul Iftas
Questions about this ruling, answered only from the archive with sources.

Where scholars differ, it’s safer to take the more cautious view.

Fatawa SA is an independent, read-only index of fatawa already published by Darul Ifta Ibn Masood. It is not a fatwa service. For your own situation, please ask a Mufti. Report an issue

For corrections or mistakes, please email us at fatawasa786@gmail.com.

Source: Darul Ifta Ibn Masood — https://fataawa.co.za/zakaat-on-long-term-debts/
Fatawa SA: https://fatawa.co.za/fatwa/ibnmasood-22832

People also ask

Do debts reduce zakaat, and is zakaat due on money owed to me?

“If the zakat recipient allows you to pay off his debts without him personally taking possession of the zakat money, it will be valid.”

Ask Imaam · 126 fatawa from 7 Darul Iftas on this

What the Darul Iftas say

Related fatawa