Q – Salaamu Alaikum Malam. A person owns a piece of land and one year has passed since he acquired it. Zakaah is due because it comes under the heading of trade goods (i.e., he bought it in order to sell it). How should he pay zakaah on it? Please note that he only has a little cash, very little?
Shaheed Ahmad, Borno
A – Zakkaah is due on trade goods according to the Qur’aan and Sunnah.
In the Qur’aan this is indicated by the general meaning of the verse in which Allaah says (interpretation of the meaning):
“O you who believe! Spend of the good things which you have (legally) earned, and of that which We have produced from the earth for you”
[al-Baqarah 2:267].
Mujaahid said: “Spend of the good things which you have (legally) earned” means trade.
With regard to evidence form the Sunnah, Abu Dawood narrated (1562) that Samurah ibn Jundub said: The Messenger of Allaah (peace and blessings of Allaah be upon him) used to command us to give zakaah from that which we had prepared for sale.
The isnaad of this hadeeth is subject to some discussion, but some of the scholars classed it as hasan, such as Ibn ‘Abd al-Barr (may Allaah have mercy on him), and it is the view that the scholars of the Standing Committee for Issuing Fatwas adopted.
See Fataawa al-Lajnah al-Daa’imah, 9/331.
Zakaah is due on things that have been prepared for trade if they reach the nisaab (minimum threshold) and one year has passed (since they were acquired).
Based on this, zakaah must be paid on the land which has been in your possession for a year; you have to determine the value of the land at the end of the year, and pay one-quarter of ten percent. So if its value is one hundred thousand (N100,000) naira, for example, you have to pay zakaah of 2.5% or two and a half thousand (N2,500), and so on.
Allah knows best.