Brother , we have 10,00,000/- of rupees Karz, and also we are paying interest for it.

Mu' meneen Brothers and Sisters,

As Salaam Aleikum wa Rahmatullahi wa Barakatuh. (May Allah's Peace, Mercy and Blessings be upon all of you)


One of our brothers/sisters has asked this question:

Brother , we have 10,00,000/- of rupees Karz, and also we are paying interest for it , Mashallah we have some property in the form of land and a house and also some gold , in this case also we have to pay zakath, plz answer me soon,thank u .


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Zakah clarification

In the name of Allah, We praise Him, seek His help and ask for His forgiveness. Whoever Allah guides none can misguide, and whoever He allows to fall astray, none can guide them aright. We bear witness that there is none worthy of worship but Allah Alone, and we bear witness that Muhammad (saws) is His slave-servant and the seal of His Messengers.


Allah says further in the Holy Quran Chapter 2 Surah Baqarah verse 278:

O Believers!,  fear Allah and give up that ‘riba’ which is still due to you,  if you are true believers.   But if you do not do so,  then you are warned of the declaration of war against you by Allah and His Messenger!


Al-Tirmidhi Hadith 2829        Narrated by Ali ibn AbuTalib

Ali bin Abi Taalib (r.a.) said he heard Allah's Messenger (saws) invoke the curse of Allah on those who took ‘riba’, those who paid it, those who recorded it, and those who refused to give sadaqah.


Respected brother, Allah and His Messenger (saws) have categorically forbidden the believers from indulging in the evil concept of ‘riba’ or interest.  Thus brother if you have taken a loan and paying interest on it in ignorance of the Laws of Shariah, you should do whatever is in your means to immediately pay back the loan and thus abstain from indulging in the ‘haraam’….and sincerely turn unto your Lord and seek His Forgiveness….it is expected that you will find your Lord Forgiving and Merciful.


Allah says in the Holy Quran Chapter 39 Surah Zumur verses 53-54:

(O Prophet) say: “O My servants who have wronged their own souls….Do not despair of Allah’s Mercy!  Surely,  Allah forgives all sins.   He indeed is the All Forgiving,  All Merciful.   Return to your Lord and submit to Him before the scourge overtakes you;  for then you may get no help from anywhere.”


Allah says in the Holy Quran Chapter 3 Surah Ale Imraan verse 135-136:

Allah likes such good people very much, who,  if ever they commit a base deed or wrong their own soul by the commission of a sin,  remember Allah instantly,  and ask for forgiveness from Him for their shortcomings.  For who,  but Allah,  can forgive sins?   (And Allah loves those) who do not knowingly persist in the wrongs they did.   These will be rewarded with forgiveness from Allah,  and with Gardens beneath which canals flow,  and they will reside therein forever!   How excellent is the reward of those who do good deeds!


Allah says in the Holy Quran Chapter 6 Surah Anaam verse 54:

When those come to you who believe in Our Signs,  say: "Peace be on you!  Your Lord had inscribed for Himself (the rule of) Mercy.  Verily if any of you did evil in ignorance,  and thereafter repented and amended (his conduct),  Lo! He is Oft-Forgiving,  Most Merciful."


Your Question: Mashallah we have some property in the form of land and a house and also some gold , in this case also we have to pay zakath,

Listed below are the two underlying principles when determining ‘zakah’:


1. If the total net worth of any believer (man, woman, or child) is more than the prescribed ‘nisaab’ of 7.5 tolas of gold (app. 85 grams or app. Value US$2,100.00), then the person is liable to pay the obligatory zakat of 2.5% on their excess wealth which has been in their possession for a full calendar year.


2. For the purpose of determining ‘zakah’, the ‘Net Excess Assets’ would be the current market value of all of one’s assets (properties, jewelry, cash, etc.) except:

  1. the value of the house one owns and actually lives in
  2. the value of the car/vehicle one uses on a regular basis
  3. the value of the furniture and fixtures one uses on a regular basis.


Lets assume that your total assets and liabilities are as follows:

  1. A house worth 100,000.00 in which you actually live.
  2. A land whose current market value is worth 20,000.00.
  3. Gold and jewelry worth 5,000.00.
  4. An outstanding loan of 10,000.00.


The house one owns and lives in, absolutely regardless of its value, is exempt from any zakah in Shariah.


Assuming the above are all your assets, at the end of the calendar year your zakah will be calculated as follows:

20,000 (land) + 5,000 (gold) – (10,000) loan = 15,000.


You will be liable to pay zakah on your total net excess assets (total zakat-able assets minus total liabilities) of 15,000.00 for the current year at the rate of 2.50% or 375.00.


Whatever written of Truth and benefit is only due to Allah’s Assistance and Guidance, and whatever of error is of me alone.  Allah Alone Knows Best and He is the Only Source of Strength.


Your brother and well wisher in Islam,





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