Question Summary:
Zakat on rental properties

Question Detail:

In rental properties, should zakat be discharged on the property or on the income of the property? For example if someone has a car showroom, where he lets cars, is zakat payable on the cars (which is his property) or on the income.

Answer :

In the Name of Allah, the Most Gracious, the Most Merciful.
As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.
In principle, hired items, for example, let out property, or hired cars or equipment hired are not subject to zakat like stock in trade. If items are hired, zakat will be on the income if other conditions of zakat are fulfilled[1].
 
And Allah Ta’āla Knows Best
Asim Patel
Student Darul Iftaa
Venda, South Africa
Checked and Approved by,
Mufti Ebrahim Desai.
www.daruliftaa.net