1. I have 2 plots that I have inherited from my father. I have intended to sale one and (then from the sale money) build on the other one. Please tell me whether I have to pay zakat on the plot that I intend to sale in future, although my intention is to build on the other plot with this plot’s sale money.
2. I live in a normal size flat, but as per my growing needs, I would need a larger flat in coming future. For that purpose, I have started investing (some amount) in property with friends. On this investment (through sale and purchase of property), I get profit on my money but the intention is to get a bigger flat through this money. Do I need to pay zakt on this invested money?
Answer:
In the Name of Allah, the Most Gracious, the Most Merciful.
As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh
1. You are not obligated to pay Zakat on the lands since you did not purchase such lands for re-sale. Rather you received the lands as inheritance and you will only be obligated to pay Zakat on the cash amount accrued after the sale of the land based on your personal financial situation.
2. Kindly advise on the property investment you refer to in order for us to determine the Shariah Compliancy of the investment and the relevant Zakat rules thereof.
And Allah Ta’āla Knows Best
Ismail Desai,
Darul Iftaa
Checked and Approved,
Mufti Ebrahim Desai.