Do I need to pay zakah though I‘ve borrowed some money?

19 Aug 2020 -

Do I need to pay zakah though I‘ve borrowed some money? Question: Salaam , I had a question regarding paying Zakat whilst a person is in debt. I have borrowed a total of £9000 from family members , to fund my university 1st year fee. My family have not set a time frame in which I need to pay this back , but iA I intend to pay this back as soon as I have finished my degree and have enough money saved to do so from my part time job at the moment , and once I have a full time job iA after university. 1)I currently do own Nisaab but my total wealth amounts to less than the £9000 I currently owe. Do I need to pay Zakat on the wealth I own? 2) hypothetically If my wealth was greater than £9000 then would I pay on the full amount or just that which is excess to what I owe members of my extended family ? Answer: In the Name of Allah, the Most Gracious, the Most Merciful. As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh. If your total wealth amounts to less than the £9000 you owe, then you are not obliged to pay zakāh. However, if the borrowed money will only be sought from you years later, or returned at your convenience, then it would be better (but not necessary) to give zakāh annually on the wealth you may have in your possession (if after deducting the amount you are requested to repay this year reaches the nisāb). Furthermore, if your wealth was greater than £9000 and the excess reaches the nisāb then you would pay zakāh only on that which is excess to what you owe others. And Allah Ta’āla Knows Best Concurred by: Hanif Patel Mu‘adh Chati Asmar Akram Approved by: Mufti Siraj Sitponi Falahi