Ask Ghamidi

A Community Driven Discussion Portal
To Ask, Answer, Share And Learn

Forums Forums Islamic Sharia Zakat On Earnings From Investments Made In Properties As A Trading Business

Tagged: ,

  • Zakat On Earnings From Investments Made In Properties As A Trading Business

    Posted by Sardar Tariq on July 6, 2022 at 5:46 am

    Asalam alekum.it is great honour for me to have opportunity to ask you .Dear sir , I am a investor and I invest on properties. I get my expenses as required from this. I have been doing this for a long time, I have been paying zakaat on the total amount of money each year approximately. The question is that should I pay on the total amount of money or only on the amount which I get as profit each year? Secondly the money is always on circulation and it is not with me for a year. Thanking you, Sardar Tariq

    Umer replied 1 year, 8 months ago 2 Members · 1 Reply
  • 1 Reply
  • Zakat On Earnings From Investments Made In Properties As A Trading Business

    Umer updated 1 year, 8 months ago 2 Members · 1 Reply
  • Umer

    Moderator July 6, 2022 at 12:59 pm

    If you are involved in purchase and sale of raw properties and making profit through such sale transactions, then this would tantamount to Trading Business (Retail Business) in which case only Zakat on weath at year-end will be applicable (Total Zakat would be 2.5% of cash-in-hand plus cash-in-bank plus value of stock-in-hand which would be value of properties in this case). However, if one is engaged in construction and sale of such houses on those properties, then one would be required to pay both Zakat on Production and Zakat on Wealth.

    To understand these heads and how to calculate Zakat in each head and when is Zakat due on each head, please refer to the following thread and take your time in reading and watching each response. Please do ask a follow-up question in case of any difficulty.

    Discussion 58129

    ___

    For short comments of Ghamidi Sahab, please refer to the video below from 1:10:53 to 1:12:56

The discussion "Zakat On Earnings From Investments Made In Properties As A Trading Business" is closed to new replies.

Start of Discussion
0 of 0 replies June 2018
Now