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Zakat On Constructed House
I bought a land on 10 Lac
Construct a house on it in 10 Lac
Sold it in 25 Lac
Throughtout this time, my intention was of business, How much Zakat should I pay?
As per my understanding of Ghamidi school, Im liable to pay 10% on 5 Lac that I earned considering land and construction material as “means of production”.
Plz correct me if Im wrong.
Note: The prices mentioned are imaginary
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1 Reply
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Zakat On Constructed House
updated 3 years, 8 months ago
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If you were materially involved in the construction of the house then your zakat will be 5%.
In Ghamidi saab’s opinion, Zakat is not only 2.5%, and it’s not only due once per year.
Income from something where both financial investment and effort are used – zakat is 5%.
Income from something where either financial investment or effort is used – zakat is 10%.
Income from something where neither financial investment nor effort is used – zakat is 20%.
All of the above are due as soon as you receive the money.
Zakat on savings is 2.5%. This is due once per year after the minimum nisab requirement. If you still had the land or the house in your possession when savings zakat is calculated, then you have to include that in your assets calculations.
Also in Ghamidi Saab’s opinion the amount one pays to the government in the form of taxes can be deducted from zakat.
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