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  • Zakat On Rent And Business Income

    Posted by Faizan Khan on March 15, 2025 at 10:24 am

    After listening to ghamidi sahab and his opinion on zakat on business income and rent and salary will be same as 5% 10% as it is for agriculture produce.

    The analogy and argument he used was the economy was different during the time of prophet and the type income that are produced now should be treated like it was treated for agriculture income.

    However i have few issues with this analogy:-

    1. Rental income was already there and known during the time of prophet in fact prophet(pbuh) him rented a land during his time. But there is no proof that any time zakat was taken on rental income.

    2. Businesses were very common during the time of prophet, more common then agriculture as well.however if there was zakat on business income it would have been collected by prophet (pbuh).

    I heard ghamadi sahab say that zakat rules are established by Allah azzowajal and prophet pbuh and state can not charge more than zakat. But how is it correct to use qiyas and apply 5% and 10% rates for business income and rental income when both these things were present during the time of prophet. We should use qiyas for something that was not seen during the time of prophet and apply some qiyas for today’s time like zakat on livestock, cows were not there but we included it based on qiyas as everything resembled the same but for something that was there in front of prophet pbuh and still he didn’t take zakat how can we use qiyas and calculate zakat on that?

    Faizan Khan replied 1 day, 4 hours ago 3 Members · 14 Replies
  • 14 Replies
  • Zakat On Rent And Business Income

    Faizan Khan updated 1 day, 4 hours ago 3 Members · 14 Replies
  • Faizan Khan

    Member March 16, 2025 at 8:03 am

    Can anyone help me get a proper response for this from ghamidi sahab or hassan ilyas sahab?

  • Faizan Khan

    Member March 18, 2025 at 10:20 am

    Anyone? Any help please?

  • Faizan Khan

    Member March 19, 2025 at 8:39 am

    How can i pass this question to Ghamidi sahab or Hassan Ilyas sahab?

  • Abdul Musawir

    Member March 19, 2025 at 10:34 am

    What do you mean by ‘businesses were common”? Do you mean manufacturing businesses were common?

    Not sure but may be the argument could be that manufacturing and rental businesses were not common at that time that income from those businesses were not above nisab to be liable for zakat.

  • Faizan Khan

    Member March 19, 2025 at 12:26 pm

    By businesses were common i mean trade business were common. Ok i understand that production businesses were not common during that time and hence on production business there should be zakat.

    but what about rent? rental income was common, prophet (pbuh) himself rented his land, in muwatta of imam malik also its mentioned

    Malik said, “What we are agreed upon (here in Madina) regarding income from hiring out slaves, rent from property, and the sums received when a slave buys his freedom, is that no zakat is due on any of it, whether great or small, from the day the owner takes possession of it until a year has elapsed over it from the day when the owner takes possession of it.”

    So by this we can understand that rent on property existed during that time, however prophet did not take any zakat on them. So how come in ghamidi sahab’s zakat calculator they are asking for rental income as well and telling that zakat on rental income is 10%.

  • Faizan Khan

    Member March 20, 2025 at 4:48 am

    Also for salary, I understand that if we are taking salary to produce something like we are making websites/mobile apps etc, we should pay zakat of 10%

    However what about salary for a doctor? he is not producing anything? or other salary where there is no production involved.

  • Abdul Musawir

    Member March 20, 2025 at 12:51 pm

    As per my understanding production isn’t taken in literal meaning here. Basically production is the money you receive as income on the given date i.e. salary. It doesn’t matter whether you are employed in manufacturing industry or service industry.

  • Faizan Khan

    Member March 21, 2025 at 11:35 am

    Then why earnings from trade business is not considered in this earning? Because the analogy for charging 5% and 10% was based on agriculture production i.e for similar production we will charge 5% 10%

    If u are saying that this was 5% and 10% on all the earnings then why not earning from trade businesses which was practiced a lot during the time of prophet?

  • Abdul Musawir

    Member March 21, 2025 at 2:46 pm

    I am saying 5%/10%/20% should be charged on all earnings except earning from trade business. These are the principles established by Islam as per my understanding. We are discussing the application of above principles on salary, not why such exception (earnings from trade business) exist in Islam.

  • Faizan Khan

    Member March 21, 2025 at 2:55 pm

    That’s what i am unable to understand, there were many kind of earnings during the time of prophet but he only charged zakat on only one of the kind of earning i.e agricultural production earnings.

    If usul was to charge on earnings then prophet would have charged on other things as well.

    I can just understand the analogy for manufacturing production similar to agricultural production.

    I just want to understand the proper analogy and reasoning to apply those rates for all the earnings except for trade.

  • Abdul Musawir

    Member March 21, 2025 at 3:31 pm

    Personally think salary, rent, shares, etc became common (than these were in that period) after industrial revolution hence the application of production principle becomes necessary on these earnings. Sir @Irfan76 can guide us better.

  • Faizan Khan

    Member March 21, 2025 at 3:57 pm

    Many things are not new but prophet (pbuh) didn’t take zakat on them. Like on rent, it was already there and is mentioned in hadith text that even he rented his land, and at other hadith we can see discussion on rent as well so it was not something that was unknown.

    Then their were skilled workers as well like the one who made weapons through their craftsmanship and sell those, that was also earning. Blacksmith and carpenters is not something that came in modern times it was already there, people used to earn from their skills, however nowhere we find that prophet (pbuh) took zakat from them.

    Moreover during the time of Umar (ra) he assigned salaries to his staff, however no zakat was taken from their salaries with 5 or 10% logic.

    And then last thing if earning is the main thing then why only exclude trade income which was so common during his time?

  • Dr. Irfan Shahzad

    Scholar March 22, 2025 at 1:27 am

    When you reply to your question by your self the question is no more listed in unanswered questions and it skips our attention.

    The government has prerogative to not apply zakat on certain things. The prophet exempted fresh vegetable from zakat because there preservation was not possible but applied it on crops generally. Hazrat Usman the third capih at a time didn’t apply zakat on anything because the treasure was full.

    The applications are based on prinolce, the precedent may or may not be available.

  • Faizan Khan

    Member March 22, 2025 at 4:38 am

    I understand that govt has right to not apply zakar on certain things. But from history its was only applied on agriculture produce, and not on other form of earnings that were prevailing.

    So when we are making or understanding the principle, we should see everything right? if earning is the principle on which we we will pay 5% and 10% then there were other earnings present at that time but prophet (pbuh) neither charged nor even discussed them.

    And the exemptions that u mentioned those were also only related to agricultural produce which does not justify that rental income was exempted by prophet (pbuh) or labour work of blacksmith or carpenters or weopon makers were exempted. Salaries that were given during the time of Umar (r.a) likewise was exempted by him.

    My question is regarding the principle itselt why are we saying that all earnings apart from rental trade is zakatable when we don’t have enough evidence to justify it. On the other side we are seeing so many earnings which were not zakatable and zakat was only charged from agricultural production income only.

    I just need to understand the principle properly, the principle could also be like if u are using nature for your business and are putting labout and capital both then its 5% if only labour or only capital then 10%. Because Imam malik used same agricultural produce analogy with mining production.

    Malik said, “Mines are dealt with like crops, and the same procedure is applied to both. Zakat is deducted from what comes out of a mine on the day it comes out, without waiting for a year, just as a tenth is taken from a crop at the time it is harvested, without waiting for a year to elapse over it.”

    whereas for rent it was different.

    Malik said, “What we are agreed upon (here in Madina) regarding income from hiring out slaves, rent from property, and the sums received when a slave buys his freedom, is that no zakat is due on any of it, whether great or small, from the day the owner takes possession of it until a year has elapsed over it from the day when the owner takes possession of it.”

    So my question is regaring principle itself. I just want to understand the principle first.

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