Is Zakat due on apparent wealth (like livestock) when the owner has debt and does not possess sufficient surplus wealth after repaying the debt to meet the nisab threshold?
Chapter on Zakat on Sheep
Al-Mughni
Book of Zakat
Primary text
There are two narrations regarding this situation. The first narration states that Zakat is still obligatory. This is because debt does not prevent the obligation of Zakat on apparent wealth, such as livestock and crops. This view is supported by the practice that the tax collector (Sā'i) would assess Zakat upon finding livestock or flocks without inquiring about the owner’s debts, due to the prominence of this wealth, the attachment of the hearts of the poor to it by sight, and the greater need to safeguard it. The second narration states that Zakat is not due upon it, as debt prevents the obligation of Zakat on all wealth, apparent or hidden.
Supporting text
The sound opinion according to Ibn Abi Musa, reflecting the view of Abu Hanifa, is that debt prevents the obligation of Zakat in all circumstances. This is narrated from Ibn Abbas, Makhul, and Thawri. This is also supported by the Hadith stating that the Prophet (peace be upon him) was commanded to take charity from the rich and return it to the poor, and the Hadith stating, 'There is no charity except from a surplus of wealth (zahr ghina).' Furthermore, Uthman ibn Affan stated that anyone with debt should pay it before calculating their Zakat, and Zakat would not be sought from one who has none after settling debts.