The Practising Muslim · Fiqh of Zakah

Zakah Payment Timing and Obligations

Determine when zakah is due on various assets and income types.

8 questions · Medium · about 4 minutes

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1. Is zakah due on the hospital building and equipment if they are kept for use and not for sale?

  • No, zakah is not due on buildings and equipment kept for use. (correct answer)
  • Yes, zakah is due on their full market value every year.
  • Yes, but only before construction is completed.
  • No zakah is due on anything connected to the project.

Why

A hospital building, devices, and equipment that are kept for use are not subject to zakah. But zakah may be due on remaining construction cash after a full Hijri year, on items prepared for sale such as medicines, and on income remaining after the hospital begins operating.

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2. How is zakah calculated on land bought with the intention of selling it?

  • It is valued at market value each year, and 2.5% is paid. (correct answer)
  • It is valued only at the original purchase price.
  • It is paid only when the land is sold.
  • It is not zakatable because it is land.

Why

Land bought for resale is treated as trade goods. Each year, it is valued at the market value when zakah becomes due, regardless of the original purchase price, and zakah is paid at 2.5%.

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3. Is zakah due on land if the owner has not firmly decided whether to sell it or build a home on it?

  • No, not until there is a firm decision to sell it. (correct answer)
  • Yes, because all land is zakatable every year.
  • Yes, immediately after buying it.
  • No, even after deciding to sell it.

Why

Zakah is not due on land when the owner is undecided between selling it and using it personally, because there is no firm intention of trade. If the owner later decides to sell, then the zakah year is counted from that decision, and the land is valued when one year has passed.

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4. When is zakah due on rent received from property?

  • When the rent reaches the nisab and one full Hijri year has passed. (correct answer)
  • Every year on the value of the rented property itself.
  • Immediately when any rent is earned, no matter how little.
  • Never, because rent is not wealth.

Why

No zakah is due on real estate that is rented out, as long as it is not bought for trade. Zakah is due on rent if it reaches the nisab and a full Hijri year passes. If rent is owed by poor tenants and is not received, the source states that when it is received, zakah should be paid for one year only.

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5. How is zakah paid on shares in a real estate fund intended for rental income?

  • Zakah is paid on the income earned from the shares if it reaches the nisab. (correct answer)
  • Zakah is always paid on the full market value of the shares, even when the property is only rented out.
  • Zakah is due only when the shares are sold.
  • Zakah is never due on real estate fund income.

Why

If the real estate is held to be rented out, zakah is due on the income each shareholder earns, if it reaches the nisab by itself or with other zakatable wealth. If the real estate is held for sale, then the shares are treated like trade goods and valued at market value after one year.

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6. When must zakah be paid on saved money?

  • When it reaches the nisab and one full Hijri year has passed. (correct answer)
  • Every month as soon as the savings increase.
  • Only when the savings are spent.
  • Only during Ramadan, regardless of when the year began.

Why

Saved money is subject to zakah when it reaches the nisab and one full Hijri year passes. If the amount drops below the nisab during the year, no zakah is due, and the year starts again when the money reaches the nisab. For ease, a person may pay zakah on all savings at one annual time, treating anything early as advance zakah.

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7. May someone delay paying zakah just because they worry they might need the money in the future?

  • No, if zakah is due and they do not need it immediately, they must pay it. (correct answer)
  • Yes, future worry always allows delaying zakah.
  • Yes, if the money was saved for marriage or a house.
  • No zakah is due on savings during hardship.

Why

When someone owns the nisab and a full year has passed, zakah must be paid immediately if they are able. If they have no available cash, are poor, or need the zakah amount for current living expenses, delaying may be allowed. But mere worry about future need is not a valid reason to delay.

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8. Is money saved for a specific purpose, such as building a house or getting married, subject to zakah?

  • Yes, if it reaches the nisab and one Hijri year passes. (correct answer)
  • No, because it has already been set aside for a need.
  • Only after the house is built or the marriage takes place.
  • Only if the money is kept in gold, not paper currency.

Why

Saving money for a future need does not remove the obligation of zakah. If the saved money reaches the nisab and one full Hijri year passes, zakah is due, whether the money is kept at home, in a bank account, or elsewhere.

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A note on these answers

These questions are for learning and self-testing. Explanations are drawn from the sources linked on each question and are not a fatwa. For a ruling on your own circumstances, please consult a qualified scholar.

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