Zakah on house rent.
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:
With reference to your answer to Q.No. 5771, please check your answer with the logic.
Suppose I have one house for living and another house or two which I gave for rent. Let`s say the monthly rent which is the only income that I receive from those houses is Rs 10,000. Suppose my (family of 6 members) mothly expenditure is say Rs 8,000, also add to it the taxes I have to pay to government annually including the house where I am living is Rs 12,000, that will make my monthly expenses to Rs 9,000. Please remember I have no other income, no job, no idea of investment.
Let us evaluate the total cost of the assents of these 2 houses that are given for rent, say Rs 20,00,000. As per your understanding you say I have to pay zakat of 2.5% that will be Rs 50,000, that comes to around Rs 4166/- per month. If you add this to my monthly expenses, it will be 13166/-. If you subtract Rs 13166 from my monthly income of 12000 Rs (12000-13166 = -1166 Rs). Also please note that I did not include the period when the houses will be vacant without being rented for say one or two months. and still I have to pay the government tax.
The above case can still be balanced if I reduce my house expenses. Think of the case where one has one house for living and other house for rent as the only source of income. I know, now you will give me the reference of the Hadith of Rasoolulah (peace be upon him) that one has to invest in order to avoid this situation. If so, tell me how does he invest his house which is the only source of income.
please tell me from where shall I bring the remaining amount. OK I will borrow
from some where to pay zakat for this year and what about for the subsequent
years. At the end I have to sell one of my house and then the second and at the
end I have to bring my family on road for begging.
I need your immediate reply as this is very serious case.
Dear brother, I have heard from many scholars of highest rank, they say that the zakat is only from your annual income what you earn from these houses and not from the total assets of these houses.
Please before giving any ruling check with the authentic scholars of highest ranks. Don`t mislead the people.
Sorry for the hard words, but your answers are really out of once understanding and practical.
The scholars even say, for example to buy the two houses which I own I save money for few years, but I have to keep paying zakat for this money at the end of each year at the rate of 2.5%, and once you bought the houses and gave for rent, you need to pay zakat for the saving you left with at the end of the year.
Islam even says, don`t leave your children without money for begging and so on. (I don`t remember the exact wording of the hadith)
Waiting for your reply at the earliest
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Zakah on house rent
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.
Respected brother in Islam, I do understand the predicament in the case narrated by you, but we absolutely assure you in the name of Allah Subhanah, that the laws of determining zakah are not made by us .. it is none other than Allah Subhanah and His Messenger (saws) alone who have made these laws; and it is in them whom the believers have professed their belief and their trust.
Listed below are the two underlying principles when determining zakah:
1. 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.
2. For the purpose of determining zakah, the Net Excess Assets would be the current market value of all of ones assets (properties, jewelry, cash, etc.) except:
- the value of the house one owns and actually lives in
- the value of the car/vehicle one uses on a regular basis
- the value of the furniture and fixtures one uses on a regular basis.
Your Question: Suppose I have one house for living and another house or two which I gave for rent.
The house one actually lives in will be obviously exempt from any zakah, but the believer will have to pay zakah annually on the market value of the two other houses which he owns, irrespective of whether they generate any rental income or not.
Your Question: Now please tell me from where shall I bring the remaining amount. OK I will borrow from some where to pay zakat for this year and what about for the subsequent years. At the end I have to sell one of my house and then the second and at the end I have to bring my family on road for begging.
I need your immediate reply as this is very serious case.
Allah says in the Glorious Quran, Chapter 2, Surah Baqarah, verse 261
The charity of those who expend their wealth in the Way of Allah may be likened to a grain of corn, which produces seven ears and each ear yields a hundred grains. Likewise Allah develops manifold the charity of anyone He pleases, for He is All-Embracing, All-Wise.
Allah says in the Glorious Quran, Chapter 2, Surah Baqarah, verse 254:
Believers, spend of the wealth We have bestowed upon you (in Allah's Cause), before the Day comes when there shall be no buying and no selling; when neither friendship nor intercession will be of any avail.
The Messenger of Allah (saws) said: I swear by Allah, your wealth will never be diminished by giving charity.
Related by Bukhari and Muslim.
Respected brother, such is the importance of paying ones obligatory annual zakah in Islam that the Messenger of Allah (saws) listed zakah as one of the five pillars upon which the deen of Islam stands upon!
Allah Subhanah, the Lord Creator and Provider of all in existence, has Himself demanded that those who have professed belief in Him and the Last Day fulfill the obligatory worship of zakah unto Him from the excess sustenance which the Lord Most Gracious Himself has provided them with. If one looks at zakah as a tax or a levy, then indeed one might feel it to be a burden..but if one believes that by giving a small percentage of ones excess savings in the Cause of Allah one would purify ones balance wealth..and believes with absolute conviction that they will have a manifold reward for fulfilling their worship of zakah in the Presence of their Lord the paying of zakah would not feel like a tax-burden but rather like an absolute rock-solid investment, the returns of which are guaranteed by none other than Allah Subhanah, the Lord of the Worlds Himself!
Allah Says in the Holy Quran Chapter 4 Surah Nisaa verses 36-40:
36 Serve Allah and join not any partners with Him: and do good to parents, kinsfolk, orphans, those in need, neighbors who are near, neighbors who are strangers, the companion by your side, the way-farer (ye meet), and what your right hands possess: for Allah loves not the arrogant, the vainglorious;
37 (Nor does He love) those who are niggardly or enjoin niggardliness on others or hide the bounties which Allah hath bestowed on them; for We have prepared for those who resist faith a punishment that steeps them in contempt!
38 (Nor) those who spend of their substance to be seen of men, but have no faith in Allah and the Last Day: if any take the Shaytaan for their intimate, what a dreadful intimate he is!
39 And what burden were it on them if they had faith in Allah and in the Last Day and they spent (in Allahs Cause) out of what Allah hath given them for sustenance? For Allah hath full Knowledge of them.
40 Allah is never unjust in the least degree: if there is any good (done) He doubles it (at least), and gives from His Own Presence a Great Reward.
Your Question: I need your immediate reply as this is very serious case.
Beloved brother in Islam, just imagine that almost half the population of the world do not have enough to eat two square meals a day.and one whom The Lord Most Bounteous has blessed with enough sustenance to own three houses, strives to make excuses in paying his paltry annual zakah!
If one who owns three houses and is unable with his current level of income and expenses to fulfill his zakah obligations, just imagine the predicament of one who has a small amount and invests that full amount in a small business and that business starts to make a loss!!!! That businessman still has to pay his annual zakah on his goods of trade, regardless of whether his business makes an annual profit or loss!
Your Question: Please before giving any ruling check with the authentic scholars of highest ranks.
Beloved brother, we absolutely assure you that the answers we write on this humble forum are taken from and then proof-read for accuracy and alignment to the guidance of the Quran and the Sunnah by the most eminent of scholars!
Your Question: Don`t mislead the people.
Respected brother, if I or anyone amongst the brothers or sisters who volunteer their time and effort on this humble forum were to seek even an iota of material or worldly benefit in exchange for our humble services.then perchance our intentional misleading of people might bring us some gain.
Allah is our witness brother, we would gain absolutely nothing by misleading the people except bring about the Wrath and the Anger and the Eternal Punishment of the Lord Most Majestic upon ourselves..whereas our one and only intention in providing this humble service is only to seek but the Mercy, Pleasure and Good-Will of our Lord Most Merciful!
Your Question: Islam even says, don`t leave your children without money for begging and so on. (I don`t remember the exact wording of the hadith)
Sahih Al-Bukhari Hadith 7.572 Narrated by Sad bin Malik
Allah's Messenger (saws) came to visit me during my ailment which had been aggravated during Hajjat-al-Wada. I said to him (saws), "You see how sick I am. I have much property but have no heir except my only daughter. May I give two thirds of my property in charity?"! He (saws) said, "No." I said, "Half of it?" He (saws) said, "No." I said "One third?" He (saws) said, "One third is (also) too much, for to leave your heirs rich is better than to leave them poor, begging of others. Nothing you spend seeking Allah's Pleasure but you shall get a reward for it, even for what you put in the mouth of your wife."
Indeed the Messenger of Allah (saws) guided his companion and the believers at large that it is better to leave ones heirs rich rather than leave them poor, begging of others for their survival.but the context of his guidance was to a believing companion who was blessed with abundance and sought permission to give all of 2/3rds or 66.67% of his entire wealth to voluntary charity in excess of his obligatory zakah .not to one who was worried or feared that the fulfilling of a mere 2.50% zakah obligation alone would leave his heirs destitute!
Allah Says in the Holy Quran Chapter 47 Surah Muhammad verse 38:
38 Behold ye are those invited to spend (of your substance) in the Cause of Allah: but among you are some that are niggardly. But any who are niggardly are so at the expense of their own souls. But Allah is free of all wants and it is ye that are needy. If ye turn back (from the Path) He will substitute in your stead another people; then they would not be like you!
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,