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We own a house in which we used to live.Few years back we constructed a house above this in which we are presently staying.

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:

Please tell me how to pay zakat in my case.

The details are as follows :


1.We own a house in which we used to live.Few years back we constructed a house above this in which we are presently staying. We gave the house below for rent of 1500.00 INR/month.How to give Zakat for this?


2.We purchased a flat for INR 500000.00 with an intension to give it for rent of approx INR 2000.00/month.How to take zakat for this?


3.We bought two peices of land in society scheme.According to the scheme the society built for us a small house on one peice and the other land is vacant.We dont have any intension to give that house for rent.So how to give zakat for this house and the vacant land?


4.If we buy any land with an intension to build a house and give that for rent, then in that case how to take out the zakat for that land?


5.If we buy any land just to convert our liquid cash into property(thinking that it may be useful in future by some means) but without any intension to sell it or anything like that , then how to take zakat on such lands.


Sir please clarify me as soon as possible.Allah hafiz.

 

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Answer:

 

Zakah calculations

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.


 

In principle, zakah is to be paid every year on the excess wealth of every believer (man, woman, or child) 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.

 

Except for the house one actually lives in, the vehicle one drives or uses, the furniture and fixtures one uses in their daily lives, the value of everything else one owns will be considered excess assets upon which the annual zakah of 2.5% would be due.

 

Your Question: We own a house in which we used to live.Few years back we constructed a house above this in which we are presently staying.We gave the house below for rent of 1500.00 INR/month.How to give Zakat for this?

Zakah is not determined by the income or profit or returns of ones investments, but rather zakah is determined from the value of ones excess assets.

 

There is no zakah on the house you actually live in; but if you have constructed an apartment above your house for investment purposes, you should determine the value of that asset, and absolutely regardless of what rent you receive, you should pay zakah on the market value of that investment at the rate of 2.50% annually.

 

Your Question: We purchased a flat for INR 500000.00 with an intension to give it for rent of approx INR 2000.00/month.How to take zakat for this?

The annual rent of the property is absolutely immaterial when calculating its zakah; if you had purchased the flat for 500,000.00 as an investment, and the current market value of that flat is 600,000.00 today.absolutely regardless of the rent that property earns, you would be liable to pay 2.50% of the current market value of the apartment as your annual zakah for the year.

 

Your Question: We bought two peices of land in society scheme.According to the scheme the society built for us a small house on one peice and the other land is vacant.We dont have any intension to give that house for rent.So how to give zakat for this house and the vacant land?
Unless and until you actually stay in that house yourself, it will be considered a part of your excess wealth and you would be liable to pay zakah on the current market value of that house and the land at the rate of 2.50%.

 

Your Question: If we buy any land with an intension to build a house and give that for rent, then in that case how to take out the zakat for that land?

The property that you buy with the intention to build a house and rent will be considered a part of your excess assets and you would be liable to pay its annual zakah on the current market value of the property at the rate of 2.50%.

 

Your Question: If we buy any land just to convert our liquid cash into property(thinking that it may be useful in future by some means) but without any intension to sell it or anything like that , then how to take zakat on such lands.

The land will be considered a part of your excess wealth and you will be liable to pay zakah on the current value of the land at the rate of 2.50% annually.

 

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,

 

 

Burhan

 


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