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Fatwas / Zakat / Considering a debt to be part of Zakatable wealth.

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Dear respected Shaykh, assalamu alaikum wa rahmatullahi wa barakatuh. Should a debt be considered as part of the wealth from which Zakat is due? احتساب الدين من الزكاة

Answer

Praise be to Allah, and may Allah’s peace and blessings be upon the Messenger of Allah, his family and his companions. Wa alaikum assalam wa rahmatullahi wa barakatuh. As to what follows: In response to your question, we say:   The majority of the scholars are of the view that it is not permissible to consider a debt to be part of the wealth because Allah the Exalted prohibited the Muslims from giving property of an inferior quality as Zakat. Allah the Exalted said, “And do not aim toward the defective therefrom, spending [from that]” [al-Baqarah 2: 267]. Undoubtedly considering debts which are due from people to be part of Zakat benefits the Zakat-giver because he protects his wealth and gives out inferior wealth as Zakat (and this is not allowed).


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