I have a question regarding zakaat. When calculating my zakaat, I have done the following:
This gave me the total amount I need to pay zakaat on. I know need to subtract any debts I have. I have a home and car loan. Do I subtract the full amounts owing or just what I needed to pay in that year?
Example: Lets say the total cash in my possession (points 1 to 4) is R 500 000 and my debt outstanding is R 900 000. If I subtract the entire amount, I will be negative i.e. – R 400 000 and then no zakaat is paid. This does not seem right, so lets say my installments for the year on the R 900 000 is R 300 000. Do I then subtract that (R 500 000 – R 300 000 = R 200 000) and my zakaat due is on the R 200 000, which will be R 5 000?
Jazakallah in advance
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Question ID: 20530