Is zakat obligatory on a plot of land purchased with the intention of trading or building on it in the future, and how is its zakat calculated? Is the annual method of distributing zakat, which includes evaluating assets such as a taxi, bank interest, the wife’s [gold] network, and distributing it to the poor, relatives, and charitable projects, correct?

Firstly: There is no Zakat on land as long as the intention to trade with it is not firm. If the intention becomes firm, then Zakat is due on its market value after one lunar year has passed.

Secondly: A car prepared for rental is not subject to Zakat. Zakat is due on its rental income if it reaches the nisab and one lunar year has passed over it. As for a car prepared for trade, Zakat is due on its market value when one lunar year has passed.

Thirdly: Usurious bank interest is not subject to Zakat because it is illicit wealth. It must be disposed of by spending it on charitable causes. Only the principal amount of the money is subject to Zakat. The balance must be transferred to an interest-free current account.

Fourthly: Zakat is obligatory on the wife's dowry (jewelry) if it reaches the nisab of 85 grams of gold. Its value is assessed at its used price on the day Zakat is due.

Fifthly: The obligatory amount to be given as Zakat on gold, silver, trade goods, and cash is one-quarter of one-tenth, which is 2.5%.

Sixthly: The recipients of Zakat are specified in His Almighty's saying: (Indeed, [prescribed] charities are only for the poor and the needy, and those employed to collect [Zakat], and those whose hearts are to be reconciled, and for [freeing] captives, and for those in debt, and for the cause of Allah, and for the wayfarer - an obligation [imposed] by Allah. And Allah is Knowing and Wise). It is permissible to give it to the poor of the village, needy relatives, and the poor of Palestine. It is not permissible to give it to your parents or your well-off brothers and sisters, unless they are in debt and cannot repay it. It is not permissible to spend Zakat on charitable buildings such as mosques and schools. It is permissible for charitable organizations for orphans and the sick if these orphans and sick individuals are poor and in need. Zakat is disbursed to them as cash or used to purchase what they need.