, I had to borrow 7000 from my cousin to pay my 3rd semester fee. So, now I owe my cousin an amount of AUD7000 (Roughly 2.25 lakhs INR)
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:
I am an overseas student basically from India studying in Australia. I have been studying for about one and ahalf year now. Most of the overseas students try to manage their University fees by doing some part time jobs here. We earn roughly about $500/week. And our university fees per sem is more than 6000 which we have to pay for every 3 months. I am in my 3rd sem now and got my first semester fee along with when I came to Australia and managed to pay 2nd semester fee from my part-time job. However, I had to borrow 7000 from my cousin to pay my 3rd semester fee. So, now I owe my cousin an amount of AUD7000 (Roughly 2.25 lakhs INR) . So do I still have to pay zakat on what I earn even though whatever I earn has to be payed to my cousin and remaining I have to pay AUD7000 for my coming semester fee. Kindly clarify.
(There may be some grammatical and spelling errors in the above statement. The forum does not change anything from questions, comments and statements received from our readers for circulation in confidentiality.)
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 no one (no idol, no person, no grave, no prophet, no imam, no dai, nobody!) worthy of worship but Allah Alone, and we bear witness that Muhammad (saws) is His slave-servant and the seal of His Messengers.
In principle, zakah is to be paid every year on the excess wealth of a believer after it has been in their possession for a period of one calendar year.
If the total nett worth of any believer is more than the prescribed nisaab of 7.5 tolas of gold (app. 85 grams or app. Value US$1,000.00), 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.
If after paying your total expenses (including your rentals, education, fees, food, transport, etc.) and the installments payments of your loans taken, you are still able to save some money and your total net worth is more than the prescribed nisaab (apprx US$1,000.00), then indeed you would have to pay the zakaah on the value of your savings or excess wealth that has been in your possession for a period of one full calendar year.
But if after paying your expenses and your loan installments, you have no savings which remain in your possession for a period of one full calendar year.then you are exempt from paying any zakah.
Whatever written of Truth and benefit is only due to Allahs 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,