Question:
Dear Brother,
This is Nayeem from Dubai
I have few question,
1. I have some personnel loan, which I gave to my relative, its more than three years, past three years have been giving zakat on that loan. kindly let me know every year I have to give zakat on incoming loan amount, ?
2. I have three land properties, which I purchased in past few years, and have been paying zakat every year, on that unused land, and there is no income, kindly let me know this also mandatory to me pay every year, or only once.?
3. While paying zakat to poor and needy people, is it necessary to tell them what we are paying is zakat amount?
Brother Kindly clear my doubt on above questions.
Jazzakallah.
Nayeem, Dubai, UAE
August 2010
Dear Brother
Assalaam o alaikum wa Rahmatullah e wa Barakatuhu
Hope you’ll be fine. The answers are as follows:
1. I have some personnel loan, which I gave to my relative, its more than three years, past three years have been giving zakat on that loan. kindly let me know every year I have to give zakat on incoming loan amount, ?
Ans: If you’ve doubt about recovery of this loan in short-run, you need not to pay Zakat on it. If you are sure about its recovery, then it is like cash. Then Zakat should be paid on it.
2. I have three land properties, which I purchased in past few years, and have been paying zakat every year, on that unused land, and there is no income, kindly let me know this also mandatory to me pay every year, or only once.?
Ans: Land is your property. You are enjoying the benefit of appreciation in value on it. You should pay Zakat on its market value @ 2.5% every year. If you utilize this land for revenue generation by giving it on rent, you should pay a Zakat @ 10% of the total amount of annual rent instead of 2.5% of the market value of the land. (This is my opinion. Other scholars hold the opinion that even in that case, you should pay zakat @ 2.5% of the market value. You can select the opinion more satisfactory for you.)
Zakat is not an expense. It is an investment in our real life i.e. Hereafter. According to a Hadith of the Prophet صلی اللہ علیہ وآلہ وسلم, this is the real money that we are saving for our real life. We’ll receive several thousand times the benefit of this investment. So this investment is much more beneficial than the investments of this temporary world.
3. While paying zakat to poor and needy people, is it necessary to tell them what we are paying is zakat amount?
Ans: It is not essential to tell the poor that it is Zakat money. Even it is better to not tell him. Give it as a gift to maintain his self-respect.
wassalaam
Mubashir
Don’t hesitate to share your questions and comments. They will be highly appreciated. I’ll reply ASAP if I know the answer. Send at mubashirnazir100@gmail.com.