Please advise on the following:

  1. I had purchased lands long time back in order to keep it as saving with no intention to sell unless fall short of money. Is there zakat on it and how much?

  2. If I had purchased land with the above intention and after 15 years sell it as the prices had gone very high. What zakat will be paid?

  3. If several lands are purchased for the purposes of trading. Then zakat is payable on the land value or the profit? and how much.

Your kind answer shall be appreciated. regards RR


3 Answers 3

  1. No zakat is needed unless you had a profit which is the case for 2. If you sell land case 2 will apply!

  2. here AFAIK zakat would be considered on the gain (= input - output) if it reaches nissab and hawl, that means if you still have that money (or enough from it) saved after a lunar year (after selling) and the amount is over the nissab (but maybe I'm wrong).

  3. would be the same situation as for 2.


Sharia Zakat Low on Papers (Money)

  1. You have more than 3354$ (22 November 2016) .
  2. Your money is increasing by one year (Current Year > Last year).

Then you pay Zakat .

  1. No
  2. Immediately after successful selling (2.5%) From the selling value
    (eg. 5000K => Zakat = 5000K / 100 * 2.5 = 125K)
  3. On Selling value (2.5%)

Afaik in a nutshell If you have no intentions of selling then its an immoveable asset and its not earning you any monthly - yearly income and you wont see any profit till you sell it unless its on rent and once you sell it that is if market is up you will make profit on it only then you will have to pay Zaka on it. Same goes for the home/house you live in if its owned by you. Acc. To major sunni Shieukh.

But Zaka in this case would be applicable on the net profit amount that could be huge if the profit is huge so you will have to pay it no matter what i.e. sold price - minus the purchase price no matter how small it was = net profit so please be fair in paying zaka on it.

And if you do this as a side business its ok the same applies to every propety you buy with whatever intentions. Since its very hard to find Rizk e Halal now a days people have to switch to means like these to make Halal Luving whever they are in this world.

Rest Allah knows best as he is all knowing and seeing.

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