My Father in low is a retried government officer, Now his family depend only his pension, no other ways for income.

Mu' meneen Brothers and Sisters,

As Salaam Aleikum wa Rahmatullahi wa Barakatuh. (May Allah's Peace, Mercy and Blessings be upon all of you)

 

One of our brothers/sisters has asked this question:

Asalaam - alaykum brother Burhan,

 

1)  Last year in May 2006 I took a loan from Bnak and purchased one property for just investment purpose. Now the bank loan is finish for this month only.I try to sell of this property and the amount to be invest to new property those I book on July 2007.  I make new property payment like this (old property sell value  + 50 % loan) from bank.  Please let me know for this property Zakat is Farj. if yes how much %.

 

2)  My Father in low is a retried government officer,  Now his family depend only his pension, no other ways for income.  He have a same amount saving in one bank for his anther daughter marriage purpose.  Before two months he given me that amt as a loan ( Karza ) to be booking for my new property.  In this case Jakat is Farz if yes how much %  & who will be paid me or my father in low.

 

Please let me know as soon as possible,

Jazak Allah Khair.

 

(There may be some grammatical and spelling errors in the above statement. The forum does not change anything from questions, comments and statements received from our readers for circulation in confidentiality.)

 

Answer:

 

Zakah clarifications

In the name of Allah, We praise Him, seek His help and ask for His forgiveness. Whoever Allah guides none can misguide, and whoever He allows to fall astray, none can guide them aright. We bear witness that there is none worthy of worship but Allah Alone, and we bear witness that Muhammad (saws) is His slave-servant and the seal of His Messengers.

 

Your Question: Last year in May 2006 I took a loan from Bnak and purchased one property for just investment purpose. Now the bank loan is finish for this month only.I try to sell of this property and the amount to be invest to new property those I book on July 2007.  I make new property payment like this (old property sell value  + 50 % loan) from bank.  Please let me know for this property Zakat is Farj. if yes how much %.

Respected brother, we will assume that the loan you have taken from the bank is interest-free and Shariah compliant; for ‘riba’ and interest have been declared absolutely and categorically unlawful for the believers who sincerely fear Allah and the Last Day.

 

‘Zakah’ is liable from every believer (man, woman, or child) whose net excess assets are above the prescribed ‘nisaab’ and have been in their possession for a period of one full calendar year.

 

Lets assume you bought the 1st property in May-2006 for 100,000.00 through the bank loan; and you paid the loan over the course of the year.  In May-2007 the property was worth 150,000.00.  For the calendar year May-06 to May-07 you would be liable to pay ‘zakah’ on the market value of the property or 150,000.00 at the rate of 2.50%.

 

Then in July-2007 you invested 150,000 in the 2nd property and took a loan for another 150,000.00.  One is not liable to pay ‘zakah’ on the loan, but rather only on their net excess asset.  Thus assuming that you do not pay anything of the loan until May-2008, and the market value of the 2nd property which you bought for 300,000.00 in July-2007 is worth 400,000.00 in May-2008…..you would be liable to pay ‘zakah’ for the calendar year May-07 to May-08 on 250,000.00 (150,000 investment + 100,000 profit) at the rate of 2.50%.

 

Your Question: My Father in low is a retried government officer,  Now his family depend only his pension, no other ways for income.  He have a same amount saving in one bank for his anther daughter marriage purpose.  Before two months he given me that amt as a loan ( Karza ) to be booking for my new property.  In this case Jakat is Farz if yes how much %  & who will be paid me or my father in low.

The inherent owner of the asset is the one who is responsible to fulfill its ‘zakah’; thus in this case it is your father-in-law who is the inherent owner of the funds, and it is he who is liable to pay ‘zakah’ on his savings at the rate of 2.50%.

 

Whatever written of Truth and benefit is only due to Allah’s Assistance and Guidance, and whatever of error is of me alone.  Allah Alone Knows Best and He is the Only Source of Strength.

 

Your brother and well wisher in Islam,

 

 

Burhan

 

 

 
Privacy  |  About Wister

Copyright © 2024 Wister All rights reserved