📂 Topic
Zakat on a Car Purchase Amount
❓ Question
As-salamu alaykum,
I owe an amount of 15 million Iraqi Dinars as part of a car purchase payment. The person who gave me the money does not wish to buy the car right now, but it will be sold and the amount will be returned to him. I currently do not know the price it will be sold for, but it is estimated between 15–17 million Dinars. How do I calculate Zakat on this?
I owe an amount of 15 million Iraqi Dinars as part of a car purchase payment. The person who gave me the money does not wish to buy the car right now, but it will be sold and the amount will be returned to him. I currently do not know the price it will be sold for, but it is estimated between 15–17 million Dinars. How do I calculate Zakat on this?
Answer
Wa alaykum as-salam wa rahmatullah,
The car is currently still in your ownership. However, as long as it is for personal use and is not being rented out, it is not subject to Zakat regardless of its value.
As for the 15 million Dinars — if this amount is still a liability upon you, it is deducted from your Zakat base, as it is a current debt. This means it is subtracted from your total assets before calculating whether you have reached the Nisab.
And Allah the Almighty knows best.