What is the obligatory Zakat on a piece of agricultural land that was acquired in lieu of a debt, then left without investment or care for several years, and then sold after its price increased?
Land acquired with the intention of personal ownership is not subject to . A new hawl (lunar year) for zakat calculation begins for its value if it reaches the (minimum threshold) upon its sale. However, if the intention behind acquiring it was for sale, it is considered a trade commodity (urud tijarah), and its zakat becomes obligatory by valuing it annually at the completion of each hawl. If liquidity is unavailable, the zakat for all previous years is to be paid upon its sale, and this is the view of the majority of scholars. There is also a view among the Malikis that zakat is not obligatory until one year after its sale, if it was intended for monopolistic trade.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
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