If I buy a residential plot with the intention to sell if for a profit, do I have to pay zakah on the land?
Should I pay zakah on the original price I paid or on the market value of the land? If I bought the land on monthly installments, should I pay the zakah from the time I made the first installment or from the time I made the last installment and took the full possession
1. If you purchased the land with the intention to resell it, then the land is Zakaatable.
2. The Zakaat on the land may be calculated according to the purchase price. If the market value is higher, that will be advisable as that will be more beneficial to the poor.
3. Zakaat will be payable only upon paying the last instalment.
and Allah Ta’ala Knows Best
Mufti Ebrahim Desai