We have an inherited land which we sold last year do we have to pay Zakat on that & how much
Wa’alaykum as Salam wa rahmatullahi wa barakatuhu,
Zakah becomes compulsory on the land from the time you intended to sell it. Hence, calculate the amount of years that passed from the time of the demise of the person from whom you inherited the land, and then see for how many years you did not intend selling the land. You do not have to pay Zakah on that land for all those years when you did not intend selling it.
However, after putting the land on the market, it will be treated as stock-in-trade, and Zakah will be compulsory on it each year.
Once the land is sold, the money accrued will be added with other assets and Zakah will be compulsory on the due date.
2.5% of the value of the land and the returns thereafter has to be given in Zakah each year.
And Allaah Ta’aala knows best
Ismail Moosa (Mufti)
الا أن يتملكها بنية التجارة (نور الايضاح، ص 214)
This answer was collected from Fatwaa.com which is an excellent Q&A site managed by Mufti Ismail Moosa from South Africa. .