Can long-term debts be subtracted while calculating zakah?
I live abroad. I have a long-term debt (home loan); can I subtract it from my zakah?
Dear Brother / Sister,
Long-term debts can be subtracted from zakah. However, if a person is well off, we advise him not to subtract the long-term debts so that he will help the poor.
A person who buys a car or a house with long-term installments like two, three, four or five years is regarded as a debtor. According to Hanafi madhhab, the debt is subtracted from the amount of zakah even if it is a deferred liability. (see Ibn Abidin, Raddu'l-Muhtar, Maymaniyya imp., II/6; Qasani, Badayi', Cairo 1327, II/11)
However, some scholars hold the view that long-term debts cannot decrease zakah. Especially Shafii scholars and a view reported from Ahmad b. Hanbal support this view. Besides, some notables of the Companions also put forward this view
From this viewpoint, if a person who has a long-term debt is wealthy enough to pay the installments regularly when they are due, it is more appropriate for him to pay zakah for the nisab amount of wealth he has in terms of caution. For, today people can lengthen their debts up to ten to fifteen years.
In that case, when zakah is calculated, such debts generally decrease the amount of zakah. Consequently, Muslims are deprived of giving zakah and sacrificing animals.
Accordingly, it is more appropriate for the spirit of zakah to calculate the debt of the current year and give zakah from the remaining amount.
Questions on Islam
- How is zakah for a house, plot of land and construction calculated? I am a builder. How should I calculate my earnings and give zakah? I construct apartment buildings and sell flats.
- Does a person who is in debt have to give zakah and sadaqah?
- Does zakah have to be paid for the money that is saved to buy a house, get married or establish a business?
- zakaat in monies put into a business
- How is zakah paid for commercial goods? Is it calculated based on the increase during the year? Can zakah be paid by goods?
- What is the procedure for zakah to give?
- Are alms given during a year regarded as zakah? Is it necessary to make niyyah for zakah
- Is it permissible to regard receivables as zakah?
- When is zakah paid? Will you give detailed information about when to give zakah?
- For whom is Zakah fard? Will you give information about the ways of giving zakah, conditions for being liable to pay zakah, the time to give zakah and to whom to give zakah?
