Zakaat on property
Question
Is Zakat due on the current market value of the land or the original value at which it was bought given that the land is still in my possesion? Also the intention of buying this land is to build a house for personal use.
In order to avoid Riba (interest) to buy a house without mortgage, I am intending to buy land(s) such that after few years I will buy a house for my own personal use after selling 1 or more lands. Is Zakat still due on this land(s)? If yes then on principal amount or current market value?
Answer
Zakaat is not payable on that land which is purchased with the intention of building one's home upon it.
If the land is purchased for resale purpose, then zakaat is payable on the market value of the land.
And Allah Ta'ala (الله تعالى) knows best.
References (Arabic / Urdu sources)
(أو نية التجارة ) في العروض إما صريحا ولا بد من مقارنتها لعقد التجارة كما سيجيء أو دلالة بأن يشتري عينا بعرض التجارة (الدر المختار 2/267)
( ولا في ثياب البدن ) المحتاج إليها لدفع الحر والبرد ابن ملك ( وأثاث المنزل ودور السكنى ونحوها ) وكذا الكتب وإن لم تكن لأهلها إذا لم تنو للتجارة. (الدر المختار 2/265)
- Answered by
- Mufti Zakaria Makada
- Checked & approved by
- Mufti Ebrahim Salejee (Isipingo Beach)
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