Zakat Questions and Answers
"Of their goods, take zakat, so that you might purify and sanctify them."
I have taken out large commercial loans to expand my business, how will this affect my zakat calculation?
A loan you have taken out to acquire zakatable assets, such as raw materials, goods and so on, can be deducted from your capital. You pay zakat on what remains.
A loan you have taken out to acquire non-zakatable assets, such as furniture, machinery and buildings are not deductible.