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XYZ is in debt of about $50,000 and he has cash about $25,000.like to know if zakat is wajib on him.

Answered as per Hanafi Fiqh by ShariahBoard.org
XYZ is in debt of about $50,000 and he has cash about $25,000.like to know if zakat is wajib on him.
If the person has $25,000 cash which he pays it off that year then there is not zakat on him. If he has to pay off this debt in a long time then that year he would have to deduct this amount of zakat from his wealth and the remainder is what he has to pay on.
Allah (Subhanahu Wa Ta’ala) Knows Best
Mufti Nawal-ur-Rahman

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This answer was collected from Shariahboard.org. It was established under the supervision of the eminent faqih of our era, Hazrat Shah Mufti Mohammed Navalur Rahman damat barakatuhum.

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