Al-Mawrid Queries

Questions and Answers on Islam

Zakat on rent or value?

Mushfiq Sultan

July 10, 2024

2 min read 2 min

Economic Issues, Worship Rituals

Question

Dear Sir,

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 and its rent will start coming from Jun/Jul 2018. For the second property, I am scheduled to make the final payment in July 2018 and will be transferred to my name on the 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 the 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 the purchase of these properties?

– Is Zakat payable on the rent too which I hope to get in 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 rental income from these properties, Zakat is not currently applicable. Zakat is not levied on the capital used to purchase these properties or on their market value. Once you begin receiving rental income, you will be required to pay 10% of this income as Zakat, according to our interpretation. Therefore, Zakat is only applicable to the rental income and not to the intrinsic value of the properties. According to the traditional interpretation, Zakat applies only to our savings/wealth.

Hope this helps.

Regards,

Mushafiq Sultan
Al-Mawrid

Answered by: Mushfiq Sultan

Date: 2018-05-16

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Mushfiq Sultan serves as an Assistant Fellow at Al-Mawrid and manages Al-Mawrid’s Query Service. His responsibilities at Al-Mawrid encompass research, writing, creation of educational content on various aspects of Islam and responding to the questions received at Al-Mawrid, thereby contributing to the institute’s mission of fostering a deeper and more nuanced understanding of the religion. Presently, he is working on the Hindi translation of Javed Ahmad Ghamidi’s important works, Mīzān and Al-Bayān. He has an exceptional interest in world religions, their philosophies, and their mutual relations. He published his first book ‘Muhammad (saws) in the Bible- An Exposition on Isaiah 42’ in 2016. He has written articles on Islam, Christianity, and Hinduism. Mushfiq has been teaching at Al-Mawrid Institute since 2018 and can be reached at sultanmushafiq@gmail.com

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