Message No : 14Sr.No : 292/725
Question By : Naved Arif

Janab maulana M.B.Qasmi Sahab,

Assalamualikum warahmatullah wabarakatuh,

I have few question about Zakat and would be grateful for your early reply if possible.

1. I had 5 lac rupees in cash till last month and was paying zakat in Ramadan every year on any balance left over a period of year. I have invested this amount last month in purchasing a land costing 7 lac, the balance amount 2 lac will be paid in instalment over a period of next 3 months. My intention for this land is to sell when it appreciated reasonably and would buy another land or home for myself.
Please advise when zaka will be due and how will it be calculated.

2. A group of my friends has invested in a land for industrial purpose. The down payment and few instalments have been paid over a period of 2 years, some more instalments are remaining and will be paid over a period of one year. They have intention to build a small factory after taking possesion. When Zaka will be due? on the current cost of the land as the period of investment has crossed one year? or after they take possession? or when they really build factory and start business?

3.What is the right method to asses the cost of jwellary for Zakat. As the jwellary is not of pure 24 k gold (21 or 22 K) and has got things like pearl or other precios stones? There is only pure gold cost is available in the market. If one sell the jwellary he gets few percent less return than the pure gold cost due to impurity and design.

4. Is zakat payable on the amount lent to somebody and if he fails to return with in a period of one year?

5. If Zakat is payable on any land kept for business purpose for more than a year in wait for further appreciation up to undefind time period and the property owner does not have cash to pay the Zaka. Can he pay zaka after he actually sell it and get cash or is there any other method? How the Zaka will be calculated if the cost of the land is appreciating yearly at certain rate?

I would be thankful for you early answers to the above questions.

Jazakumullah khairah,

Wassalam,

 

Reply By : Mohd. Shihabuddin Qasmi
Designation : Mufti, ODI, MMERC, Mumbai 

(We apologize for any inconvenience caused by late replying to the question)

In the name of Allah, All Gracious, All Merciful
Wa Alaikumussalam
Dear Brother in Islam,
The answers to your questions are as follows:

1. Zakat of the land purchased for selling must be paid along with other cash amount, if any on the completion of a complete lunar year. (Fatawa Al-Hindiyyah: 1/179)

2. Zakat will have to be paid on the products and incomes earned by the factory and not on the land or factory if it has not been purchased for business purpose. (Raddul Muhtaar: 2/11)

3. If the quantity of gold exceeds all other metals that the jewellery contains, the jewellery will be regarded as gold and Zakat will be obligation on it, if it is equal to the Nisab, 88 grams approximately. (Fatawa Al-Hindiyyah: 1/179)

4. It is not necessary to pay Zakaat before recovering the loaned amount, but after getting it, Zakaat should be paid for the whole period. (Raddul Muhtaar: 2/12)

5. Zakaat should be paid immediately as it is not appreciable to delay it without any prescribed reason. If someone is unable to pay full amount of Zakaat at a time, he can pay it on different occasion with the intention of Zakaat. (Ibid: 2/27) Or fortieth part of the said land can be given as Zakaat or sold to pay the amount of Zakaat. Zakaat will have to be paid on the current cost of the land.

And Allah knows the best,

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