Zakat on a plot of land
In the name of Allah, the most Beneficent, the most Merciful.
If a person buys a plot or a piece of land then there are three possibilities.
- If he brought it for re-sale then he has to give zakat on the market value of the plot every year.
- If he brought it for building a house or for his own personal use, then there is no zakat.
- If he brought it and at the time of buying it, he made no intention regarding it, there will be no zakat. However, when he sells the land the money acquired should be added onto his other zakatable assets and zakat given thereupon. (Aapke Masail p.371 v.3)
When calculating zakat on the plot of land, the zakat must be calculated according to the current market value of the plot each year and not on the purchase price. (Ahsanul Fatawa p.299 v.4)
Only Allah Knows Best
Mohammed Tosir Miah
Darul Ifta Birmingham.