Zakaat on rental property.

Question

Zakat on residential plots

As salamualaikum,

Ramadan Kareem

I purchased a residential plot in my home town from a friend and got registered on my mother’s name. We purchased with the intention to build a home for family and not for re-sale.

Plot Area was not developing so later on we decided to sell it in order to purchase residential house from Builder(fully constructed-readymade). Government changed in India and the market rates went down, we could not get buyer for plot even for less profit. Do I need to pay zakat on this plot.

If yes then from when:

One year after Date of registration

When I made the intention to sell instead of building my home in this plot, adding 1 year

Note- I have another plot which was purchased with same intention of building for family. Now I am renovating my parents’ house. So both the plots are in our possession.

Wasalam

Muajul I. Chowdhury · Accepted Answer

In the Name of Allah, the Most Gracious, the Most Merciful.

As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.

You purchased both plots in reference to develop them for personal use. You now changed your intention and decided to sell the plots. There is no zakat on both plots[i].

If you sell the plots, zakat will be on the proceeds of the sale of the plots according to your personal financial situation.

And Allah Ta’ala Knows Best

Muajul I. Chowdhury

Student Darul Iftaa

New York, USA

Checked and Approved by,
Mufti Ebrahim Desai.

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