Does religion prevent the obligation of zakah?

The questioner : Honorable Shaykh, a man has a debt of one hundred thousand riyals, and the due date is the end of Shawwal. He currently has sixty thousand riyals, and the time for paying zakah is approaching, which is the end of Ramadan. Does he pay the zakah, or is zakah not obligatory on him because of the debt?

The Shaykh : According to the stronger position, a debt does not prevent the obligation of zakah. Therefore, if a man has a debt of one hundred thousand and has one hundred thousand in his possession, he owes zakah, because a debt does not prevent the obligation of zakah according to the stronger position. The reason for this, or the evidence for it, is that the texts regarding the obligation of zakah are general. Thus, a quarter of a tenth is due on silver, a sheep is due on forty sheep, a sheep is due on five camels, and a one-year-old camel or a two-year-old camel is due on thirty cows. All of these are general and do not distinguish between one who has a debt and one who has no debt.
As for the one who says that a person with a debt does not owe zakah in the amount of the debt, his statement is [incorrect], and the correct view is that a debt does not prevent the obligation of zakah. Yes. May Allah reward you.