I sold a mud brick house for 100,000 riyals to be paid in installments over 10 years. Each year I am paid 10,000 riyals. How should I calculate the Zakah that is due on this money?
May Allah reward you greatly for answering my question.
(Part No. 9; Page No. 193)
Zakah is due on the entire aforementioned sum if a year has passed since the time you sold the house. You must pay the Zakah on the total amount at the end of each lunar year regardless of the fact that it is being paid to you in installments over 10 years. This is because it was your choice to collect the money in this manner according to what was in your best interest.May Allah grant us success. May peace and blessings be upon our Prophet Muhammad, his family, and Companions.