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:
We are living in Swiss and we have a house in Srilanka where my father and mother in law lives and when ever we go to srilanka we go and stay there. And we bought a shop over there and it is closed and no one is using it.
1. Do we have to pay the Zakah for that house and shop in Srilanka?
2. Do we have to pay every year for it?
3 Do we have to pay Zakah for the cost or for the worth at that time? And i have some jewellery and i pay Zakah for it every year. But one of the muslim Brother told that he heard a hadith saying that only once we should pay after we buy it and it is sufficent. Is it correct? Am waiting for your reply
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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.
If the total net worth of any believer (man, woman, or child) is more than the prescribed nisaab of 7.5 tolas of gold (app. 85 grams or app. Value US$2,100.00), then the person is liable to pay the obligatory annual zakah of 2.5% on their net excess wealth which has been in their possession for a full calendar year.
If the total net worth of any believer is less than the prescribed nisaab, he/she is not liable to pay any zakah until their net worth exceeds the prescribed nisaab.
For the purpose of determining zakah, the Net Excess Assets would be the current market value of all of ones assets (properties, investments, 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.
Q-1: Do we have to pay the Zakah for that house and shop in Srilanka?
If the house you bought in Sri-Lanka is not the house you yourself normally live in on a daily basis, it will be regarded as being amongst your excess assets. Thus absolutely regardless of who else actually occupies that house, you, as the owner of that house, would indeed be liable to pay 2.50% zakah on the market value of that house every year.
Absolutely regardless of whether the shop you own is used or unused, absolutely regardless of whether you generate any income from that shop or not..that shop would be regarded as being amongst your excess assets, and you would be liable to pay 2.50% zakah on the market value of that shop every year.
Q-2: Do we have to pay every year for it?
Indeed, the payment of zakah on ones net excess assets is an annual obligation unto the believers who sincerely fear Allah and the Last Day.
Q-3: Do we have to pay Zakah for the cost or for the worth at that time?
The annual zakah is not determined by the cost one bought ones asset, but rather it is determined by its worth or market value at the time of determining its zakah.
Thus if one bought a property for investment worth $1,000.00 and at the end of the calendar year when its zakah is determined its market value has increased to $2,000.00; one would be liable to pay 2.50% of $2,000.00 as its annual zakah.
Alternatively if one bought a property for investment at $1,000.00, and at the end of the calendar year its market value has decreased to say $500.00; one would be liable to pay 2.50% of only $500.00 as its zakah.
Your Question: And i have some jewellery and i pay Zakah for it every year. But one of the muslim Brother told that he heard a hadith saying that only once we should pay after we buy it and it is sufficent. Is it correct?
We absolutely assure you that there is nothing in the authentic and established Sunnah which implies, leave alone declares, that zakah for jewelry or any of ones excess assets are to be paid once only..the zakah is an annual obligation which must be fulfilled every year on ones net excess assets by the believers who sincerely believe in Allah and the Last Day.
The brother who claims that there is a hadith from the Messenger of Allah (saws) which declares that zakah on jewelry (or any other asset) should only be paid only once after one has bought it and not annually should be asked to provide his evidence for his declaration from the Quran or the authentic and established Sunnah.and we absolutely assure you brother, there is none!
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,