[xiaoselangone]

[QUOTE=amr123;700354]
Its mentioned in Umdat As Salik:
hS.S If merchandise is sold during the zakat
year at a profit and its price is kept until the end of
the year, then zakat on the merchandise's original
value is paid at the end of that zakat year, but the
zakat on the profit is not paid until the profit has
been possessed for a full year.
(n: A second position in the Shafi'i school is
that the zakat on the profit is simply paid in the
current zakat year of the merchandise, just as one
pays zakat on the offspring of livestock (dis: h2.7)
in the current year of their mothers (Mughni almuhtaj
ila ma'rifa ma'ani alfaz al-Minhaj (y73),
1.399).)

Even if you receive 'advance payment' you are the owner of the land till the transaction is completed ie full payment is done by the buyer. So the land is still Zakatable right?
As for the advance payment, doesn't it come under profit?

I don't think we laymen can understand this, even after reading the rulings from the book. You will find a good ulema to clear this doubt. Salaam Sidi, Jazak Allah Khair for taking time out for your post.

Sorry maybe the way I wrote it led to some misunderstanding. For this question (Q2), I AM the buyer. So I am paying in instalments to the owner (who are a Real Estate Company). I won't be in possession of the land until I pay all instalments (which is several years down the line). I can't sell it during this period nor realise any profit.

I actually found the answer for this one Alhamdulillah (although I will still confirm it with a Mufti):


If you have actually purchased your share in the property, meaning the deal is complete and the instalments paid are part of the total sum towards the purchase of the property, then in such a case, Zakat will not be obligatory on this money paid as instalments towards the purchase of the property.

If, however, the deal is not yet complete, meaning that you have not actually purchased the share in the property, rather the instalments paid are merely something that is given in advance; then in such a case, Zakat will be obligatory on this money.

..... Therefore, if the piece of land or property has come into your ownership, then Zakat will be obligatory on the current market value of this land or property.

In other words, you will be paying Zakat either on the land or property (if the deal is complete) or on the instalments given (if the land or property has not as yet come into your ownership).

As far as the instalments that remain to be paid are concerned, it is obvious that there is Zakat on it, as this money is still with you and has not been paid.


Ref: http://qa.sunnipath.com/issue_view.a...=4211&CATE=179

What I understood from that: There are two aspects to it. One is the actual land and the other is the money being used to pay the instalments.

If the deal isn't complete, I don't own the property and thus there is no zakah on its appreciation year to year. However, since I have the money for instalments in my possession at the moment, that will still be subject to zakah under the normal rules. Allah knows best.