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Do I pay zakat on my bank deposit or net amount (bank deposit minus loans)?

Answered as per Hanafi Fiqh by Muftisays.com
my question is regarding zakat, i want to know that if i have some bank deposits as well as loans, should i have to pay zakat on net amount i mean bank deposit less loans or i have to pay on banks deposit amount.

Answer
Bismillah

Al-jawab billahi at-taufeeq (the answer with Allah’s guidance)

There is no Zakat upon anyone who has a debt encompassing his money. But, if his money is more than the debt, he pays Zakat on the excess if it reaches Nisab. (Quduri)

For Example, if you add all the Zakatable assets and then subtract it from the liabilities and the left over reaches the rate of Nisab, then Zakat will become Fardh otherwise not.

(Zakatabul Assets – Liabilities)

And Only Allah Ta’ala Knows Best.

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Moulana Qamruz Zaman
London, UK

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This answer was collected from MuftiSays.com, based in London (UK). It is one of the fruits of Darul Uloom London. Many ‘ulama are involved in answering the Q&A on the site, including: Shaikul Hadeeth Mufti Umar Farooq Sahib, Mufti Saifur Rahman Sahib, Mufti Abdullah Patel Sahib, Maulana Qamruz Zaman Sahib, Mufti Abu Bakr Karolia Sahib.

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