Zakat on rent or value?

Question

Dear Sir,

In order to supplement my pension I recently invested in two commercial properties to rent. One of these will be transferred in my name in a few days time and its rent will start coming from Jun/Jul'18.For the second property I am scheduled to make final payment in Jul'18 and will be

transferred in my name on final payment. The rent will not come in before Jan/Feb next year. So far I have only made partial payment for it. I calculate my Zakat on 1st of Ramazan every year. As this date is just around the corner I would like to know what is my obligation for payment of Zakat in the above circumstances, particularly :

- Is Zakat payable on the amount paid for purchase of these properties?

- Is Zakat payable on the rent too which I hope to get in the Jun/Jul?

- Subsequently, will Zakat be payable both on rental income and the value of properties(actual payment made and/or value of properties at that time)?

Thanks.


Answer

Salaam

Thank you for writing to us.

Since you have not yet received the rent from these properties, no Zakaat will be applicable on them as yet. Zakaat will not be applicable in the amount used to purchase these properties or the value of these properties. As and when you start getting the rent, you will need to pay 10% of it as Zakaat according to our view. Zakaat will only be applicable on the rental income and not the value of the properties.

Hope this helps.

Regards,

Mushafiq Sultan

Al-Mawrid

About the Author

Mushafiq Sultan


Mushafiq Sultan, born in Kashmir (Indian Administered) in 1988, has been studying world religions from his school days. In 2009 Mushafiq came across the works of Ustaz Javed Ahmad Ghamidi and since then has been highly influenced by his thought. He has an exceptional interest in world religions, their philosophies and their mutual relations. He formally joined Al-Mawrid in 2016 as Assistant Fellow (Honorary). Presently, he is in charge of Al-Mawrid’s query service. In 2016, he published his first book ‘Muhammad (sws) in the Bible- An Exposition on Isaiah 42’. He has written articles on Islam, Christianity and Hinduism. He has also translated several articles of Javed Ahmad Ghamidi into Hindi.

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