As-salaamu ‘alaikum wa Rahmat-Allah wa Barakaatahu I’m currently a student with student loans. However, I have some jewelry sitting idle; am I to pay Zakaat on this jewelry and if so, how is it calculated, taking the loans into account? Does this also apply to clothes which have not yet been given away as a Sadaqah? Jazaak Allahu khairan for sharing your time and knowledge.
If the loan amount exceeds the value of the gold jewellery, then there is no
zakaat on the jewellery. If the value of the jewellery is in excess of the
loan amount and is equivalent to the minimum zakaatable amount then only
zakaat will be due on the jewellery. You may contact your local Muslim
organisation for the minimum zakaatable amount.
and Allah Ta’ala Knows Best
Mufti Ebrahim Desai
FATWA DEPT.