Zakat on a land purchased for gains and paid off home mortgage

434 viewsZakatzakaat zakat

I have a question if someone has a piece of land purchased in order to get gains and pay off his home on mortgage

  1. Does he need to pay zakat on it
  2. At what value he need to pay Zakat as land purchased amount is normally less than the current value
  3. One has to pay Zakat every year or when he sells it.

Bismillahi Ta’ala

Walaikum Assalam Warahmatullah

  1. If the land is purchased with intention of being resold for gains, then it will be considered as “stock in trade”, and remains a zakatable assets for the duration it will be in one’s possession. It will be included in zakatable assets.
  2. Zakat will be paid on the market value of the land, just as for any stock in trad
  3. Yes, one will pay zakat for this particular land every year.

Wallahu A’lam

And Allah Ta’āla Knows Best
Mufti Faisal al-Mahmudi