I have already having 2 residential houses and 1 commercial property for which, i am paying zakat on the rental income. I have purchased 8 residential plots at different durations ranging from year 2000 to 2009. The intention of keeping these residential plots for my daughter’s studies and for their marriage. After my children marriage, if i have plots, i will gift my children accordingly. Please advice, i have to pay for these 8 residential plots.
As per your scenario You have to pay. Intention of Residential plots is not for residence but for income (that would be used for children studies and marriage).
It is basically investment, you saving for your future financial needs. So Zakat applies to this scenario.
For confirmation, you must ask some scholar.
I can only share based on my experience. Rest you can talk to your religious scholar or mullah in mosque you attend.
Residential house/car etc. in personal use are exempt. All money in bank is subject to zakat. All additional savings in shape of plots are also subject to zakat.
Only if you recently purchased a plot and haven't owned for 1 whole year than it is exempt. Rest of everything above NISAAB is subject to zakat.
Also rental income is not subject to zakat as you are spending it on yourself or may be saving in bank. So actual asset is subject to zakat which in this case will be rental house or saving in your bank.
This is how I calculate. Rest Allah knows best. Please do consult your mosque on this.
Also a much bigger question these days is who you give this zakat to. Make sure you verify everything before you give-it-out.
Just my opinion as long as you are not earning or generating wealth from the residential plots no zakat should apply. If daughters decide to buid their house then no zakat should apply.
JDM's explaination is correct. Zakat is due on what you have in excess of nisaab. The wealth could be in any form including plots.
i have only doubt on his explanation quoted below.
"Only if you recently purchased a plot and haven't owned for 1 whole year than it is exempt".
the principle of zakat is 'wealth beyond nisaab in posession for a year'. So if plot is recent, but wealth is not, zakat should be paid.
Assalam Alaikum Jaffar,
Your are obliged to pay Zakat for the 8 plots if they have completed 1 year. Since you are not using them.
Like if gold is not used for 1 year then you have to pay zakat.
If you have saving in the bank for more then 1 year then you have to pay zakat.
Any property which is in personal regular use has no zakat.
Any thing personally unused, or done investment has zakat on it.
Does anybody have any link to share on Zakat from any credible source? Specifically zakat on plots and houses as its not very simple as it sounds.
Thanks in advance