Is Zakah,' payable on the cost or the market value of an investment made in open land (Residential plot) ? Print
ZAKAH.. [Obligatory Charity] - General

Q: 4- Is Zakah,' payable on the cost or the market value of an investment made in open land (Residential plot) ?

A: If the residential plot is purchased for the purpose of resale then Zakah will be liable at the market value, but if the plot is acquired for purposes other than being resold then Zakah will not be payable.

Contemporary fatawaa