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Zakah on rent or property value: Plz answer as i enquired from one aalim and he told me that zakah will be on the income and not on the property value

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:

assalamu alikum dear brother in islam i want to ask you that my mother wants me to build one small building on her name and she wants to use this for renting purpose. she will rent these flats. my question is as we have our own house and this building what we are planning to build is purely for renting. just to make clear this we dont have any intention to sell, just for renting . my question is do i have to pay zakah on the property value or i will have to pay zakah on the excess income from the rent . plz answer as i enquired from one aalim and he told me that zakah will be on the income and not on the property value . plz answer in the light of ahadiths.

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Zakat on Rent on property value

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.

Zakah is annually liable from every believer (man, woman, or child) whose net excess assets are above the prescribed nisaab and have been in their possession for a period of one full calendar year.

The rent one receives from ones invested property is absolutely immaterial when determining the annual zakah; for zakah is based on the net excess assets of each believer, not on ones annual income.

If you wish to build a building with the intent to rent the apartments you would indeed be liable to pay zakah on the market value of the building at the end of EACH calendar year at the rate of 2.50%.... absolutely regardless of whether you receive any rent or not, or whether the rent received is more or less than the amount of the liable zakah.

There are indeed a few scholars who have given their opinion that the annual 'zakah' can be based on the rent one receives from the apartments, but that opinion is not accepted by the majority of the scholars and the jurists in Islam.  And Allah Alone Knows Best.

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

Your brothers and well wishers in Islam,

Members of Islamhelpline

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