How is Zakat on money paid for funds invested in the trade of land and real estate or electrical appliances, where Zakat on the principal amount has been paid for several years, and then a profit was realized from it?
The zakat on mudaraba (partnership) funds is paid by its owner along with its profits at the end of each Hijri year. As for land purchased with the intention of reselling, its zakat is paid as trade goods by appraising its value at the end of the year. If its value reaches the nisab (minimum threshold) and a year has passed on that nisab, then one-quarter of one-tenth (2.5%) is to be paid. If the zakat was not paid on time, it must be paid for the past years based on the value of the share in each year. If it was more than what was paid zakat for, then the zakat for the difference must be paid. If it is difficult to determine the value, then one should strive and endeavor to estimate it to the best of their judgment at the end of each year and pay the zakat for the difference. If you received profits before the completion of the year, their zakat is due along with the capital.
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