Zakat on Land
Posted: 20 Muharram 1432, 26 December 2010
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Q. I have purchased a plot for investment purposes. Do I need to pay zakat on it? So far, I have received the allotment letter for the plot but not the possession letter. There are some formalities and payments that need to be done, which will be completed next year. |
A.Zakat should be paid on the market value of the plot if it was purchased for resale. If the investment referred to was in order to earn a rental income therefrom, then zakat is not payable on the value of the property.
And Allah Ta’ala Knows Best
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