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Zakaat for land ?

Answered as per Hanafi Fiqh by Askimam.org

A person earns his loving by buying a huge piece of land and then cuts it up and sells it into smaller pieces. Does he have to treat the land as trading stock and pay zakaat on it in that manner or is this view incorrect. If it is incorrect could you please let me know of the correct way of calculating zakaat

Answer

If the person buys the land with the sole purpose of resale, then this land will be regarded as stock in trade. However, if at the time of purchasing there was an intention of using the land for other purposes then no Zakaat will be paid on the land itself. (Hidaaya part1 pg.187)

and Allah Ta’ala Knows Best

Mufti Ebrahim Desai

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

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