ZAKAT ON PROPERTY

By

Housing Associates

-

On

October 22, 2022


Ass one of the pillars of islam, zakat meaning to [ cleanse]  is a form of obligatory charity that has the potential to ease the suffering of millions.for muslim who owns wealth over a certain amount needs to pay 2.5% of that wealth as zakat.

 

1- FUTURE HOME

 

People who have purchased property for residential purposes in longer run in bahria town or dha city, zakat is not applicable on this property.

 

2- TRADING

 

People who purchased property for trading purposes and not residential purposes are eligible for giving 2.5% zakat. For those who purchased for investment and later on thought of residing. The time spent after purchasing zakat needs to be paid on that.and after the thought of residing there no zakat needs to be paid after that. Vice versa if purchased for residential purpose and l;ater on thought of taking the profit zakat needs to be paid 2.5% annually of the total profit.

 

3-MAXIMUM RATE

 

When purchasing property, one wants to hold it till maximum profit and does not have the amount to pay zakat on it yearly. The amount you receive after selling it the rest of the years zakat needs to be paid after selling.

 

4- MARKET - OFFER RATE 

 

Zakat is implemented on market price only  and property purchased for rental income and on one property the rent received annually sums up then zakat needs to be paid. Not on the property. And who owns more than one property and the rental income goes into expenses but the zakat needs to be paid on those properties annually.

 

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