Q# 1. My father purchased a land for a shop in 1997. At the time of purchasing it was in his mind that he would construct a shop at that plot and will do some business after his retirement, one thing I would like to mention that this plot was purchased for personal use not for commercial use. As we have purchased a plot under army welfare scheme. Till now plot is not handed over to us, my father thought was until he doesn’t have the possession he cannot sale the plot. In present he consults the authorities regarding the possession of the plot, they said we are yet unable to give you the possession but you can sale it to anybody on the basis of documents. As my father need some money right now urgently so decided to sale out that plot. My question is regarding zakat. Do my father have to give zakat for previous years or not. One thing more I would like to mention that my father is in under loan due to incompletion of some task.
There is no Zakaat on a land purchased for personal use. If the land is subsequently sold, then Zakaat will be payable on the proceeds of the sold land only if all the conditions of Zakaat are fulfilled.
and Allah Ta’ala Knows Best
Mufti Ebrahim Desai