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Zakat on plot lands query

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#1 [Permalink] Posted on 13th July 2019 15:18
Assalam u Alikum,

I have query on zakat for land plots. I live in overseas. I don’t own any home either in home country or nor in overseas.

I have total 9 plots in my home country as per below. Currently, I do not have any intention to sell these plots, unless until in future if I need cash/funds for my kids (a son and a daughter) higher education, marriage, home construction or any emergency.

Kindly advise either if Zakat is payable on which of these plots (and zakat payable %).

Plot # 1 & 2: These are two residential plots. We have plan whenever we go back to home country, we will construct our home on these two plots.

Plot #3: I have intention to build home on this and gift to my daughter on her marriage.

Plot #4 & 5: if I have finance available in future, I will construct homes and will put these property for rental income (my retirement income plan). Or if my sister wants to live in one of them, she can take one.

Plot #6 & 7: there are two options in my mind

(a) To buy land (and construct home) near my parents in law home (this area is expensive). So I may sell these two plots (6&7) in order to purchase new land near my parents in law place. If I go for this option, I will not construct home on above said plot 1&2. However, possibility of this option (a) is low, as it requires lot more financing.

(b) if I have finance available in future, I will construct homes and will put these property for rental income (my retirement income plan).

Plot #8 &9: A residential and a commercial plot. It is currently new city development in progress and it is expected to be future business hub in next 1 or 2 decades. So in case, if I or my son in future need to move/live in this new city (for job / business purposes), so we can use these plots for ourselves living / business.

Regards,
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#2 [Permalink] Posted on 13th July 2019 16:56
Zakat on a plot of land

In the name of Allah, the most Beneficent, the most Merciful.

Answer
If a person buys a plot or a piece of land then there are three possibilities.

If he brought it for re-sale then he has to give zakat on the market value of the plot every year.
If he brought it for building a house or for his own personal use, then there is no zakat.
If he brought it and at the time of buying it, he made no intention regarding it, there will be no zakat. However, when he sells the land the money acquired should be added onto his other zakatable assets and zakat given thereupon. (Aapke Masail p.371 v.3)
When calculating zakat on the plot of land, the zakat must be calculated according to the current market value of the plot each year and not on the purchase price. (Ahsanul Fatawa p.299 v.4)

Only Allah Knows Best

Mohammed Tosir Miah

Darul Ifta Birmingham.

islamqa.org/hanafi/daruliftaa-birmingham/87014
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#3 [Permalink] Posted on 13th July 2019 17:53
Zakat on Plot of Land

By Mufti Ebrahim Desai
POSTED: 18 SAFAR 1424, 20 APRIL 2003

Q.) I bought a plot last year with intention of keeping and building a house on it. That's why I did not pay Zakat on it last Ramadan. Now, I got a good offer, so I sold it. Do I have to pay Zakat on it now or wait till next Ramadan?
A.) There was no Zakat on the plot. Now that you sold the plot, the laws of Zakat will apply on the proceeds of the sale. If one year passes on the amount, then Zakat will be compulsory.

If you already have a Zakatable amount, then this acquired amount will be joined to that amount and be Zakatable together, when one year of the original amount expires even though one year did not pass on this acquired amount.

www.albalagh.net/qa/zakat_plot_land.shtml
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