I am running a full time business in garments and all zakah is paid as briefed by a Mufti. Recently I had invested in construction business, to which I am a sleeping partner, we had purchased a plot and are in process of approval of constructing a building, is this kind of business investment excluded from zakah? We are building for purely resale and as a matter of fact we already had sold some of flats and shop in advance. I had heard money invested in business is excluded from zakah.
بسم الله الرحمن الرحيم
(Fatwa: 1201/811/L=10/1434)
If the house or land is purchased with the intention of selling then it shall turn business property and zakah shall be wajib on its value. If the land or house is not purchased with the intention of selling though at a later time the intension is changed then no zakah shall be wajib on the value of that land or house right now. However zakah shall be wajib on its price after it is sold provided the conditions which make zakah wajib are met.
Allah knows Best!
Darul Ifta,
Darul Uloom Deoband