Fatwa ID: 03214
Answered by: Maulana Imran Mughal
If one owns a house, and he is renting it out on a monthly basis, he must pay zakat on both the income received and the value of the house? Or just the income received?
What about a person who owns a retail store? Does he have to take inventory of every single item, and then pay zakat?
Reason for asking is that I remember that there were some conditions for this.
بِسْمِ اللهِ الرَّحْمنِ الرَّحِيْم
In the name of Allah, the Most Gracious, the Most Merciful
Zakat will not be given on a property owned that is rented out, but it will be compulsory to take out zakat for the income received through the property if all the other conditions of zakat are fulfilled.
Zakat will also be compulsory on items for trade, so if someone owns a store, he will have to pay zakat on the current market value of those items and not on the price of the items when wishing to sell them.
Only Allah SWT alone knows best.
Written by Maulana Imran Mughal
Checked and approved by Mufti Mohammed Tosir Miah
Darul Ifta Birmingham