Mufti Online — Madrasah Ta'leemuddeen

Deducting long term debts when calculating zakaat

· 1 Safar 1448 AH1 min readEnglish

Question

I have a question regarding zakaat.

I follow the Hanafi madhab. I have an Islamic home loan and car loan (Musharakah Agreement) via an Islamic bank. The home loan is 15 years for the house and 6 years for the car. I also have a savings account for investment purposes and I intend to use some of the funds for Hajj.

I have read via the an Islamic newsletter on zakaat that for long term loans such as home loans and car installments, which does not require immediate payment, we must deduct the money owed for a year and not the full amount. If I deduct the full debt amount I won't be liable for zakaat. If I deduct the 1 year payment only, I will be liable to pay zakaat.

Please confirm if my understanding is correct and I must only deduct 1 years payment? Please advise if I must proceed with deducting the 1 year debt and not the full debt.

Answer

The full debt amount that is outstanding will be deducted.

And Allah Ta'ala (الله تعالى) knows best.

Answered by
Mufti Ebrahim Salejee (Isipingo Beach)
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