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:

Salamalaikum.
could you please clarify some doubts abt zakat. Is zakat due on the value of property or on its income. Is zakat due on aloan given without interest to help someone.

Is zakat due in diamonds and other stones.

An early reply will be greatly appreciated.  

(There may be some grammatical and spelling errors in the above statement. The forum does not change anything from questions, comments and statements received from our readers for circulation in confidentiality.)

Answer:

Zakah on property or income

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 Question: Is zakat due on the value of property or on its income.

If the land which is owned is agricultural land, then the zakah is determined not by the value of the land but rather from the produce of the land. If the produce on the land is grown by rain-water then the zakah will be determined at 10% of the produce; and if the produce of the land is grown by irrigation or non-rain water, then the zakah value is determined at 5% of the produce.

For any non-agricultural land, the zakah would be determined annually at 2.5% of the market value of the property and not its income.

Your Question: Is zakat due on aloan given without interest to help someone.

The majority of the scholars and jurists are of the opinion that zakah is only due on the excess wealth which has been in one’s possession for a period of one full calendar year. When one gives a loan to another, the wealth is no longer in the possession of the one who gives the loan, thus some amongst the jurists in Islam are of the opinion that the person is not to pay the zakah on the loan he has given out as ‘kard-hasanah’ (a good loan, or loan without interest) until the loan is repaid by the debtor.

Some jurists and scholars differ from the above opinion and declare that since the person who gives the loan is the actual owner of the wealth, he should fear Allah and fulfill his zakah obligations on his excess wealth. And Allah Alone Knows Best.

Your Question: Is zakat due in diamonds and other stones.

Diamonds or other precious stones would be considered amongst the excess wealth of a person and annual zakah would indeed be due upon the value of the stones at the rate of 2.5%, provided the diamonds or precious stones have been in one’s possession for a period of one full calendar year.

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

Your brother and well wisher in Islam,

Burhan