Is Zakat obligatory on land that was sold out of necessity after being purchased without the intention of selling it, and if it is obligatory, how is Zakat calculated?
If a person buys land with the intention of trading, becomes obligatory on it upon the completion of a year (hawl) on the money with which it was purchased. It is calculated by taking out one-quarter of one-tenth (2.5%) of its value at the time the hawl is completed.
As for someone who buys land without the intention of trading, then sells it out of need or for a good price, trade zakat is not obligatory on them. However, if a hawl passes on its price after it has been sold, they must pay zakat on it as money zakat.
If one hesitates about the intention of owning it or trading with it, no zakat is due until they firmly decide on the intention of trading.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
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Where this answer came from
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- Ftawy
- Original fatwa ID
- 13665
- Added here
- . This is when the answer was added to El Fatwa, not the fatwa's date.
- Text
- Summary from Ftawy's records, reviewed by El Fatwa's sharia committee.
- Read the full ruling
- Read the full answer on Ftawy