I bought a car on interest free hire purchase last year. I paid a deposit and then I have to pay a set amount of 23 instalments. With the 24 instalment I have to pay the balance of. For example if the car was £10,000, I paid a deposit of £2,000 and 23 monthly instalments of £200 I will have a balance of £3400 which I will have to pay as the 24th instalment.
I have paid the deposit and 12 instalments already and I have the balance 12 instalments to pay over the next year. Do I deduct the balance outstanding when calculating my zakat for this year?
A person can deduct owed debts from their zakat balance. If the debt is a long term debt paid in instalments over a long period of time then they will be able to deduct one years worth of instalments. As you only have one year worth of instalments left to pay then you may deduct this entire sum from your zakat balance and pay zakat on the remaining.
الدر المختار وحاشية ابن عابدين (رد المحتار) (2/ 260)
فارغ عن دين له مطالب من جهة العباد) سواء كان لله كزكاة وخراج أو للعبد
Ifta Research Fellow
Checked & Approved by:
Mufti Abdul Rahman Mangera
Mufti Zubair Patel