Question Summary:
Zakaat on rental property.

Question Detail:

Asalamualaikum,
 
I own a property which is used for rental purposes only and provides an income each week (currently). Do i need to pay Zakaat on this and if so, how should I calculate it?
 
jazakhalah khair

Answer :

In principle, if a person possesses a rental property, he will not be liable to pay zakah on the value of the property.[[i]][[ii]][[iii]]
Instead, if the rental income reaches the value of nisaab*, and remains for a complete Islamic year or the said person is a sahib- e -nisaab* and pays zakah on his other assets,[cash,gold silver etc], this rental income will form part of the other cash and will be subject to zakah.[[iv]][[v]]
* The standard Nisaab of Zakah is Two Hundred Dirhams (silver coins) equivalent to 612.35 grams of silver or Twenty Mithqals of Gold equivalent to 87.479 grams of gold or any currency that equals the value of this amount of gold and silver.
* A Sahib -e-Nisaab is one who possesses the Nisaab of Zakah (a required amount of money or assets that qualifies a person liable of discharging Zakah).
And Allah Ta’āla Knows Best
Anas ullah sharieff
Student Darul Iftaa
Hyderabad, India
Checked and Approved by,
Mufti Ebrahim Desai.