Q 5: I have a wealthy brother, who invests his money in buildings, shops, and lands, and he rents them out. I advised him to pay (Part No. 9; Page No. 332) the Zakah (obligatory charity) on all his assets and his profits, but he told me that Zakah was only due on the rents, not the assets nor the capital, and that was only if they remain in his possession for a full lunar year before he spent them on buying another building. Many people do the same as my brother; is it permissible to do this in Islam without being a sinner?
What is the type of real estate on whose rent and value Zakah is not due until a lunar year has passed?
Is there a limit to this or does it apply to any amount?
There are many different types of wealth that people can own, one of them is money. When the money reaches the Nisab (the minimum amount on which Zakah is due) and a lunar year has passed, Zakah becomes due on it. Another type is agricultural land and its Zakah is due on its grain or fruit produce at the time of harvest, but not on the value of the land itself. A third type of wealth is rented out lands or buildings, on whose rents Zakah is due once a lunar year has passed on the rents, but not on the value of the lands or the buildings themselves. A fourth type is lands, buildings, or commercial commodities that are intended for sale, Zakah is due on them if they are owned for a full lunar year, and this applies to both their profit and their capital if their value reaches the Nisab.May Allah grant us success. May peace and blessings be upon our Prophet Muhammad, his family, and Companions.