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Zakat on property

Answered according to Hanafi Fiqh by Askimam.org

As Salamu Alykum Wa Rahmatullahi Wa Barakatuh,

I had agreed to purchase a Residentlial plot 2-3 months earlier and paid partial payments. The Plot is yet to be registered in my/ wifes name.

1. We are thinking to build a house for ourself in one floor with additional residential rental units in upper floors on the same as a source of income.

2. Maybe we will build only residential units for rentals as asource of income.

So, should we have to pay Zakat on that plot? Please advice.

Answer

In the Name of Allah, the Most Gracious, the Most Merciful.

As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.

You purchased the residential plot for personal use and development. You did not purchase the residential plot to resell. There is no Zakat payable on the purchased residential plot or on the residential units which have been rented out for income.[i] However, the rental income from the properties will be added to your cash in hand and will be liable for Zakat.[ii]

And Allah Ta’āla Knows Best

Riḍwān

Student Darul Iftaa 

UK

Checked and Approved by,
Mufti Ebrahim Desai

______


[i]

(أو نية التجارة) في العروض، إما صريحا ولا بد من مقارنتها لعقد التجارة كما سيجيء، أو دلالة بأن يشتري عينا بعرض التجارة أو يؤاجر داره التي للتجارة بعرض فتصير للتجارة بلا نية صريحا،

الدر المختار وحاشية ابن عابدين (رد المحتار) (2/ 267)

 

[ii]

آپ کے مساءل اور ان كا حل – مكتبة لدهيانوي – 5/109

This answer was collected from Askimam.org, which is operated under the supervision of Mufti Ebrahim Desai from South Africa.

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