General questions on Zakah : several questions regarding Zakah

Fatawa Question

Assalaam Alaikum Wa Rahmatullahi Wa Barakaatahu, As usual I am asking you some questions again, but this time it is on behalf of my mother. She would like to know some things related to Zakah. Her sons have loans, but their wives have gold with them. What is the limit beyond which the Zakah has to be paid on the gold ? The gold was bought for the purpose of personal use and some were gifts in marriage. For the purpose of safety and security some gold is lying in the bank (security) Lockers. From what I understand, Zakah is not payable on any amount of gold as long as it is within the limit of what is usually possessed by other women of her society or relatives, right ? But here since some gold is lying in the locker for the purpose of security, do they have to pay the Zakah on the gold in the locker ? Golden jewelry and bullions used for personal purposes is subject to Zakah if it reaches Nisab that is equal to 85 grams and you have the same amount at least at the end of a lunar year that begins on the day you got the Nisab for the first time ; it is at the rate of 2.5 % and it repeats every lunar year since then, it can be paid from the gold itself or from other sources. Such gold or any part of it will be exempt form Zakah if both the following two conditions are fulfilled together : 1) It is not beyond what peer women have ; and, 2) It is practically in use in contrast to being stored as saved wealth. (Practical use does not mean every day but rather for its occasions). 2) My parents had a clear flat (i.e., no dispute) in India, which they gave on rent while going to Canada. Apart from this they had bought a flat (in dispute with the govt. regarding the installments.)They had bought this flat from someone else, even while it was in dispute with the govt., and as such the other person had surrendered his rights over the flat in all terms (including the dispute with it !),to my parents. Now my parents have to pay the rest of the price to the govt. for it, the amount of which is yet to be decided by the court. So while leaving for Canada they let the disputed house on rent too. The house you live in is not subject to Zakah even if you happen to rent it for sometime while overseas. This means that the house your parents used to live in is not subject to Zakah. Now if she decided to stay in Canada and gave up the idea of returning to India and living in that house, it becomes an investment property. Investment property is subject to Zakah. My opinion on the market value of the property regardless of its rent and must be paid yearly ; it can be delayed if no cash is available until the investment property is sold in the case of delay Zakah for all past years must be paid when cash becomes available. The disputed house is also subject to Zakah as long as it is investment property unless your brother intends to go back to India and live in it then it is considered as his live in house that is temporarily rented. Any rent collected will be used for any purpose it does not matter, as any remainder will be added to the balance of cash and bank deposit that will be subject to Zakah on yearly basis. It doesn't matter who owns it or for whom it is going to be given later as long as we apply the test of : is it an investment property or a residence house that is temporarily rented. They had very very long ago(maybe 20 yrs ago or so) Booked a plot in India. It never got developed till 2-3 years ago when a construction company offered to develop and give houses to the plot owners equivalent to the amount they had paid (of course they have to pay more to meet the inflation over the years)…. The houses are not yet in possession of my parents(now only my mother). This property is also subject to Zakah on a yearly basis since it was purchased, you exclude the period when it was barren and used for nothing, not even intending to sell it or develop it. The amount that is subject is the market price. The reason is that this is a property that is apparently intended for developing for investment or for making profit some time in the future. This makes it subject to Zakah. There are people who say that real estate is not subject to Zakah at all, they carry no evidence as if they do not live our age ! What ever rent has been collected from the first two properties that I mentioned (i.e., their own clear flat, as well as the disputed flat), the rents for them are being used to pay for the house not yet in possession. Their own flat is in the name of my younger brother, which was to be given to him as it was mostly his money that was used to buy it. And the other name was my mother's (joint possession), as some was her money. But the intention was for only my brother to possess it later. This brother is now living on rent in Canada. The other house (i.e., the disputed flat) was bought in the name of my elder brother, with the intention that he would possess it later (the money for it was paid by my parents).Now even he is in Canada, staying in a house on mortgage. The rents for their houses are being used to pay for a house yet to come in possession of the family My mother would like to know how to pay the Zakah for the houses mentioned above. (i.e., the ones in India, we understand that they are not to pay the Zakah for the house on mortgage in Canada). Thanks a lot in advance for your efforts and time.

Fatwa

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Publication Date

2006-09-18

Main Subjects

Economics & Business Administration
Islamic Studies

No. of Pages

3

Data Type

Fatawa

Language

English

Record ID

BIM-792229

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