Answer
(Fatwa: 367/404/N=1433)
(1) If your friend whom you want to give zakah does not possess extra and debt free wealth which is equal to the nisab (612.360 grm silver) as well as he is not a Sayyid then you can give him zakah to repay his debt and renew his Iqamah. Your zakah shall be paid, but you should not give him as much zakah that after paying his debt he remains sahib nisab as per the Shariah. As it is makrooh to give zakah, except of a debtor and person having large family, to anyone else an amount that makes him sahib nisab as per the Shariah. However, Zakah shall be paid by giving in lump sum, as it is mentioned in Al-Durr and al-Radd (kitba al-Zakah, Bab al-Masraf, Vol. 3, 303-403). Hence for the renewal of Iqamah and giving huge amount of zakah, it is better to adopt this method that your friend spends money for the renewal of Iqamah by borrowing from you or from someone else then you give him the huge amount of zakah and then he pays his debt by the amount.
(2) As per the two conditions mentioned above, if furniture is bought with the amount of zakah at the time of your cousin sister’s marriage then zakah shall be paid, but the prevalent dowry is a non-Shariah practice and it should be avoided. Hence one should shun helping in this fund through zakah.
Allah (Subhana Wa Ta’ala) knows Best
Darul Ifta,
Darul Uloom Deoband