Mu' meneen Brothers and Sisters,

As Salaam Aleikum wa Rahmatullahi wa Barakatuh.  (May Allah's Peace, Mercy and Blessings be upon all of you)

One of our brothers/sisters has asked this question:

Dear brother kindly clarify the following:- a) If somebody owns a piece of land (not agriculture land) has he to pay Zakat on it. b) for Zakat on house ,will it be on the total price or the rent that one gets . c) what are the rules for other properties such as, shops, cars, etc.

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Answer:

Zakaat

In the name of Allah, We praise Him, seek His help and ask for His forgiveness. Whoever Allah guides none can misguide, and whoever He allows to fall astray, none can guide them aright. We bear witness that there is no one (no idol, no person, no grave, no prophet, no imam, no dai, nobody!) worthy of worship but Allah Alone, and we bear witness that Muhammad (saws) is His slave-servant and the seal of His Messengers.

Your comment: If somebody owns a piece of land (not agriculture land) has he to pay Zakat on it?

If the land is bought as an investment, then one must pay the zakaah on it according to its market value. If one is not able to determine the market value, then he may pay the zakaah on the purchase value of the land.

Your comment: for Zakat on house ,will it be on the total price or the rent that one gets?

If the person lives in the house himself, then there is no zakaah on the house. But if the person has given the house out on rent to someone else, he must pay 2.5% of the annual rent as the zakaah for his property. Some scholars have also opined that the calculation of the zakaah on the rented house should be treated like the calculation of agricultural land, and the owner must pay a 5% zakaah on the annual rent.

Your comment: what are the rules for other properties such as, shops, cars, etc.

The house that one lives in, the one car that he uses, and the things that he uses for his personal needs have no zakaah due on them; but if one pays it, it will be purer for him in the sight of Allah.

Ref: Shops

If one owns and runs a shop or shops, there is no zakaah on the property. The zakaah should be paid on the inventory that one owns in those shops.

Ref: Cars

The one car which the person uses, is exempt of zakaah. But if a person has more than one car, then he must pay 2.5% of the car value as zakaah.

Whatever written of Truth and benefit is only due to Allah’s Assistance and Guidance, and whatever of error is of me. Allah Alone Knows Best and He is the Only Source of Strength.

Your Brother in Islam,

Burhan