Pay zakah on investments.
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:
SALAMS DEAR BROTHERS
RAMADAN KAREEM.
PLS SHED MORE LIGHT ON ZAKAT. LIKE WE HAVE PROPERTY
INVESTMENTS IN DUBAI IN OFF PLAN PROPERTIES AND NOW WE DONT KNOW WHETHER WE
WILL GET THE MONEY BACK OR MONEYS WORTH AS WE HAVE PAID ONLY BOOKING DEPOSITS
AND VALUES HAVE COME DOWN MORE THAN 50-80%
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Answer:
Pay zakah on
investments
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.
If the total net worth of any
believer (man, woman, or child) is more than the prescribed ‘nisaab’ of 7.5
‘tolas’ of gold (app. 85 grams or app. Value US$2,500.00), then the person is
liable to pay the obligatory annual ‘zakah’ of 2.5% on their excess wealth
which has been in their possession for a full calendar year.
If the total net worth of any
believer is less than the prescribed ‘nisaab’, he/she is not liable to pay any
‘zakah’ until their net worth exceeds the prescribed ‘nisaab’.
For the purpose of determining
‘zakah’, the ‘Net Excess Assets’ would be the current market value of all of
one’s assets (properties, investments, jewelry, cash, etc.) except:
Your Question: LIKE WE HAVE
PROPERTY INVESTMENTS IN DUBAI IN OFF PLAN PROPERTIES AND NOW WE DONT KNOW
WHETHER WE WILL GET THE MONEY BACK OR MONEYS WORTH AS WE HAVE PAID ONLY BOOKING
DEPOSITS AND VALUES HAVE COME DOWN MORE THAN 50-80%
Scenario-1: Value of investment
have depreciated 80%.
If you paid a booking deposit of
say $10,000.00 and the market value of the invested property has depreciated
say 80% to $2,000.00; you would be liable to pay ‘zakah’ on the current value
of your investment would be 2.50% of $2,000.00 for this year.
Scenario-2: Uncertain whether
the money invested will be returned, or fear the property will never be made,
etc.
If you paid a booking deposit of
say $10,000.00 and fear that the property might never be made or whether the
money will ever be returned, you are well within your rights to delay the
paying of the zakah for this investment until you actually receive the money
back or the property deed is sellable.
If and when the investment materializes, you can pay the zakah dues for
the number of years you held the asset without paying its zakah. If the investment never materializes, you
obviously are not liable to pay any zakah on that lost investment.
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