1. Does debt cancel the obligation of zakah on wealth that has reached the nisab?
- No, zakah is still due; a due debt may be paid first if it is due before zakah. (correct answer)
- Yes, any debt cancels zakah completely.
- Yes, debt cancels zakah only on cash.
- No, but the person must pay zakah on factory machinery used for work.
Why
According to the view cited, debt does not cancel zakah on zakatable wealth. If a debt is due before zakah is due, it may be paid first, then zakah is paid on what remains. Factory products and trade goods are zakatable, but machinery and fixtures kept for use are not.