Zakah on Residential Plot
Question:
I am selling a residential plot in Pakistan and plan to bring money to Canada to pay as down payment to buy a house for investment purpose (rental purposes). Should I pay zakat on the money got by selling the plot. Or if I invest all amount as down payment, I am liable to pay zakat on the income from rental property.
Please guide.
Jazak Allah
Answer:
According to the views of Javed Ahmad Ghamidi, if you keep the money idol for one lunar year then you will need to pay zakah on it, at the rate of 2.5%. However if you invest it within a lunar year then as you wrote you will need to pay zakah on the income (the rent), that will be at the rate of 10%.
In my revised understanding, the tax that you are obliged to pay to the state is the very zakah that the religion has made obligatory for you. Therefore whatever tax applies to the above is also your religious duty.
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November 2013
Revised: July 2016
I am selling a residential plot in Pakistan and plan to bring money to Canada to pay as down payment to buy a house for investment purpose (rental purposes). Should I pay zakat on the money got by selling the plot. Or if I invest all amount as down payment, I am liable to pay zakat on the income from rental property.
Please guide.
Jazak Allah
Answer:
According to the views of Javed Ahmad Ghamidi, if you keep the money idol for one lunar year then you will need to pay zakah on it, at the rate of 2.5%. However if you invest it within a lunar year then as you wrote you will need to pay zakah on the income (the rent), that will be at the rate of 10%.
In my revised understanding, the tax that you are obliged to pay to the state is the very zakah that the religion has made obligatory for you. Therefore whatever tax applies to the above is also your religious duty.
----------
November 2013
Revised: July 2016
