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:

My doubt is about payment of Zakath on a property.When my ancestral property sold out I got Rs,5 lakh as my share. I immediatly purchased another property which fetches Rs.2500/ rent per month. My doubt is whether I have to  pay Zakath for the amount of 5 lakh which I got as share from the ancestral property or I have to pay Zakath  only for total rent I received during that year.

(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 rent or asset value

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 none worthy of worship but Allah Alone, and we bear witness that Muhammad (saws) is His slave-servant and the seal of His Messengers.

‘Zakah’ is annually liable from every believer (man, woman, or child) whose net excess assets are above the prescribed ‘nisaab’ and have been in their possession for a period of one full calendar year.

The rent one receives (or does not receive) from one’s invested property is absolutely immaterial when determining the annual ‘zakah’; for ‘zakah’ is based on the net excess assets of each believer, not on one’s annual income.

If you have bought the flat for 5-lakhs, regardless of the annual rent you receive (or don’t receive) from this property, you would indeed be liable to pay ‘zakah’ on the market value of your flat at the end of each calendar year at the rate of 2.50%.

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