I have read in a book that if there is an outstanding debt of R120,000 on a house worth R120,000 the entire amount is exempt from Zakaat. Is that correct?

If that is the case, one will not pay Zakaat for many years.

The ruling contained in that book is incorrect. Only the amount that is
due for one year will be regarded as a liability. (Shaami vol.3 pg.177;
Lebanon)

From: Al Mahmood 13 Q & A from the Darul Ifta
Mufti Ebrahim Desai

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