I own a house in Karachi Pakistan. My children work and live in the USA and UK. As I am nearing retirement, I have bought a house in London to be near my children when I give up working. Currently this house has been rented out as I am still working and this is something which has been planned for the future.
QUESTION: Do I have to pay Zakat on the capital value of the house as well as the income from the rent, OR, just on the income from the rent?
Jabir bin 'Abdullah narrated that the Messenger of Allah (s.a.w) said:'A slave (of Allah) shall not believe until he believes in Al-Qadar, its good and its bad, such that he knows that what struck him would not have missed him, and that what missed him would not have struck him." (Jami 'at Tirmidhi)
"...Praise be to Allaah. With regard to the property that is rented out, zakaah must be paid on the rent if it reaches the nisaab(minimum threshold) by itself or when other money is added to it, and one full hijri year has passed since acquiring it. One quarter of one tenth (2.5%) must be given as zakaah.
The year for the rent starts from when the rental contract begins...."1
Zakaat on Houses
"...There is no zakah due on the houses that a Muslim builds for his family or children, even if their value rises. And houses that he builds to rent out are not subject to zakah themselves, rather zakah is due on the rent if it reaches the nisab (minimum amount which has to be possessed for zakah to be due) and one whole hijri year has passed. Houses that he builds in order to sell are subject to zakah, because they are a kind of trade goods, so after one year has passed he should calculate their value and pay zakah on them, one-quarter of one-tenth of the total value...."2
Questions can be submitted to the islamqa.info site.
What about zikat on land? If it fully paid off? I bought it years back for Rs. 7 lakhs and now the value is Rs. 1 crore. Do I owe zakat on it? If so, how much? Thank you
What about zikat on land? If it fully paid off? I bought it years back for Rs. 7 lakhs and now the value is Rs. 1 crore. Do I owe zakat on it? If so, how much? Thank you
No zakat is due on land that you own, unless you are preparing it for sale.
More information on the link I have shared above, or you can visit the url below :
Jabir bin 'Abdullah narrated that the Messenger of Allah (s.a.w) said:'A slave (of Allah) shall not believe until he believes in Al-Qadar, its good and its bad, such that he knows that what struck him would not have missed him, and that what missed him would not have struck him." (Jami 'at Tirmidhi)
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