19 January 2021   5. Jumad-us-Thaani 1442

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Zakah on Debts

Q. Are debts regarded as deductible liabilities?

The classical juristic texts state that all debts are regarded as deductible liabilities when calculating Zakah. However, some contemporary jurists differentiate between the types of debts, e.g. debts which are for commercial expansion or investment purposes and personal debts that are basic, whilst others do so based on the term of repayments of short term and long term debts.

Darul Ihsan is of the view that in long term debts, only the coming twelve months instalments due will be considered a liability and deductible.

And Allah Knows Best

Darul Ihsan Fatwa Department

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