Debt does not exempt one from Zakaat

Question:

A shop owner is in debt. Does he still have to pay zakaat? May Allah bless you.

Answer:

And you; may Allah bless you, too.

Yes, if the money, including what he has borrowed, is in his possession for a full Islamic calendar year; he must pay zakaat.

However, if he takes out the borrowed amount before the passing of a full Islamic calendar year and the total drops beneath the required threshold for zakaat, there is no zakaat upon him.

As for if the money is in his hand or possession, a full Islamic calendar year has passed and it has reached the required threshold of zakaat; then verily, debt does not exempt one from zakaat.

This is the correct statement from the statement of the scholars.

Answered by: Shaykh Abu Bilaal Al-Hadhramy – may Allah preserve him

Source: https://t.me/abubilalhami/3117

Answered on: 18 Sh’abaan 1440 (23rd April 2019)

Translated by: Abu Sufian Sami ibn Daniel Al-Ghaani