Tuesday | 07 December 2021 | 2 Jamadiul-Awal 1443
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Fatwa Answer

Question ID: 822 Category: Worship
Zakat

Q1)  I Own several properties  and bought them for investment purpose  . few of them I collect rent. empty lots with no income, I use to live in one home and now its rented  I paid 407k  that i paid ?but I have loan on it 

Q2)  do I pay zakat on this home if yes is it on current value ?  minus my loan. also another home paid off collecting rent.     

Q3) I own bunch of properties in Pakistan bought them for investment purpose and one home I gave it my brother to live for free,  no income there it was my childhood home.

Q4) also I own car dealership  I have lot of the cars that are paid off do I pay zakat on them if yes but how do I pay zakat on inventory ? but I do borrow money to buy cars from bank, also , do I pay zakat on a net income every year ? plus inventory ? I do use dealership property for business and have loan on the dealership property do I pay zakat on it  also do I pay zakat on cash money I put away for my daughters marriage expenses .

jazk 

الجواب وبالله التوفيق

1- The rule for discharging Zakat is that if the property or house has been bought with the intention of investment, then paying Zakat on them with respect to their current value is considered wajib. Therefore you have to pay Zakat on the properties mentioned in #1.

2- The home from where you are receiving the rent, Zakat will be wajib on the value of the rent and not on the value of the property. You will deduct the monthly payment towards the total loan from your income only for the month in which you are discharging your Zakat. The house which has already been paid off, Zakat is wajib only on the rent you receive from it.

3- The answer to #1 covers this question as well i.e. whether the properties are generating any profit or not, if they were bought with an intention of investment then Zakat is wajib on it.

4- The cars which have been paid off, Zakat iswajib on it and will be calculated on their current market value. In addition, any profit made on their sale should also be added before paying Zakat. For the income on the cars which still have loans against them, Zakat will be calculated on the leftover amount after the total debt on that car has been paid off (from the income on it), adding any profit to the final calculation.

5- Zakat is not applicable on this piece of land as it was bought with the intention to do business on.

6- If you have set aside some cash or jewelry for your daughters, have made them the sole owners of it and they have a right to use them as they please, then it is wajib upon them to discharge Zakat on it, only if the total value qualifies for the value of nisab. If however, you have not made them the sole owners instead you are planning on doing that at the time of their marriage, then it is wajib upon you to pay Zakat on it.

(عن ابن عمر قال لیس فی العروض زکاۃ الا ما کان للتجارۃ  (کتاب النوازل، ص508، ج6، بحوالہ بیہقی

الزکاۃ واجبۃ فی عروض التجارۃ کائنۃ ما کانت اذا بلغت قیمتھا نصابا من الورق والذھب (کتاب النوازل، ص474، ج6

ولیس فی دور السکنی و  ثیاب البدن زکوۃ (کتاب النوازل، ص473، ج6

الزکوۃ واجبۃ علی الحر العاقل البالغ المسلم اذا ملک نصابا (کتاب النوازل، ص455، ج6

واللہ اعلم  بالصواب