Title: Zakat & Charity

Question: I had bought one commercial space for rental business. Now I have decided to sell the same at market price. Should I pay zakah on the amount of selling price? My second question, if it is not sold, then should I pay zakah on the rental income per year [if remaining on the amount of cash in hand] or on the purchasing price/selling price of the property. I shall be obliged for your reply.

Answer ID: 44418Posted on: Aug 31, 2020

Bismillah hir-Rahman nir-Rahim !

(Fatwa: 496/393/B=1434) (1) A land bought with the intention of business also comes under business goods. Zakah shall be wajib each year on its value and when you will sell it zakah shall be wajib on the money you will receive in return. (2) Yes, zakah shall be wajib each year on the income derived from rent. If that plot is with the intention of business i.e. with the intention of selling then zakah shall be wajib each year on its value as it was mentioned above.