I have a question about Zakat on a piece of land that I bought 3 years back with an intention to build a house over it and live in it . However, I never got a chance to build a house therefore piece of land is as is. Now, I am planning to sell it, as I already bought a house in different City where my job is. Do I need to pay Zakat on the Peice of land which I still owned by me at this point (planning to sell but no buyers are coming forward at the moment). If I still should pay a zakat then on what amount ? The amount that I paid to purchase the Land or the whatever is it's current value?
Another question regarding Zakat on the money that I lended to one of my relative 6 months back for couple of months but he didn't paid me back yet (neither I ask him to pay me back) . Do I need to pay zakat on that money as well?
Jazak Allahu Khairan
الجواب وبالله التوفيق
1- Zakat is not wajib on the land which was bought with an intention to build a house on. However zakat became wajib on the market value of this land from the point when you changed your intention of building a house to using it for investment purposes (i.e. the previous three years will not be counted).
2- You should pay zakat every year until you have the hope that your loan will be paid back to you. The other way is to pay the zakat for all outstanding years once you have received the payment back. However if you forgive the loan (and not take the money back from that person) then you will not be liable to pay any zakat on that amount.
واللہ اعلم بالصواب