Question Summary:
Do I have to pay Zakaat on land?

Question Detail:

Aslamualikum! I bought two plots (space to build houses) with the intentions to sell them one day and make profit. But i'm not sure if giving Zaakat is fardh on me or not because of those plots. In other words is it compulsory for me to give Zaakat? 

Answer :

In the Name of Allah, the Most Gracious, the Most Merciful.
As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.
Your question is not clear.
Kindly state whether you purchased the land with the intention to re –sell immediately or did you purchase the land with the intention of keeping the land and then selling it after some time?
If you purchased the land with the intention of re-selling immediately and making a profit, it would be considered as stock in trade; hence you are obligated to pay Zakaat on the current market value of the land if it reaches the amount of Nisaab.[1]
If you purchased the land with the intention of keeping the land and then re-selling after some time and making a profit, then you are not obligated to pay Zakaat on the land in reference since it is not considered as being stock in trade.[2]
And Allah Ta’āla Knows Best
Moulana Ismail Desai,
Student Darul Iftaa
Durban, South Africa
Checked and Approved by,
Mufti Ebrahim Desai.