Zakat Al-Mal has been mandated as the best evidence of social solidarity among the members of a single community, where wealth is transferred from the rich to the poor. It is a fixed obligation in Islam but is subject to specific mandatory conditions and has a threshold that, once reached by a Muslim, necessitates the payment of Zakat Al-Mal.
This article discusses the rulings on Zakat Al-Mal for real estate and cars, and everything related to the fixed assets of a Muslim’s wealth, whether they are subject to Zakat Al-Mal or not.
Rulings on Zakat Al-Mal for Money on Real Estate and Cars
The rulings on Zakat Al-Mal vary based on the purpose of owning assets. Real estate intended for personal living is treated differently compared to those intended for commercial purposes. Real estate used personally is exempt from Zakat Al-Mal as it is considered part of private funds that do not require Zakat Al-Mal, a position unanimously agreed upon by scholars. Conversely, real estate intended for investment for gain and profit, like buying and selling, is treated as trade goods, and Zakat Al-Mal is obligatory.
Similarly, the Zakat Al-Mal on a car depends on the intention behind its acquisition. If it is for personal use, it is exempt. However, if it is for trade and profit, Zakat Al-Mal is due if its value reaches the Nisab (minimum amount required for Zakat Al-Mal to be due) either on its own or when combined with other assets.
Rulings on Zakat Al-Mal for Saved Money Intended for Buying or Building a House or Apartment
Zakat Al-Mal is due on saved money once it reaches the Nisab and a full year has passed, even if the purchase has not actually been made.
By the following year, if this money is used to buy a property for residential purposes, no Zakat Al-Mal is due on it. However, if the purchase is made with the intention of trade, Zakat Al-Mal becomes obligatory, considering the Zakat Al-Mal calculation from the date the money reached the Nisab, not from the date of purchase.
Rulings on Zakat Al-Mal for Income from Rented Apartments
Zakat Al-Mal is due on the income from rented apartments only if it reaches the Nisab and a full year passes without being spent and is calculated at a quarter of a tenth. However, if this income is spent on meeting basic needs until it is less than the Nisab, no Zakat Al-Mal is due on it.
Ruling on Zakat Al-Mal for Saved Money Intended for Buying a Car or Land
When a Muslim saves money with the intention of buying land or a car, and the purchase is not made within a year with the Nisab being met, Zakat Al-Mal becomes obligatory. The intention alone to buy a house for living or a car does not exempt this money from Zakat Al-Mal as long as it remains saved and is not actually used for the purchase.
Calculation of Zakat Al-Mal on Real Estate and Cars
Zakat Al-Mal on real estate prepared for rental is calculated from the annual income it generates. If this income reaches the Nisab, which is the equivalent of 85 grams of gold or more, and a year passes, its Zakat Al-Mal is due at 2.5%. If the property is for investment, like buying an apartment for sale to gain profit from it, Zakat Al-Mal is also applied at 2.5% of the amount gained from the sale.
For cars, no Zakat Al-Mal is due on a car used for personal purposes. However, if it is designated for buying and selling as an investment, its Zakat Al-Mal is calculated at 2.5% of its market value when a lunar year passes on the intention of trade.
How to Pay Zakat Al-Mal on Money for Real Estate and Cars
Zakat Al-Mal on money is paid by calculating the value of the property or car; if they reach the Nisab, estimated at 85 grams of gold, then 2.5% of the value of each is due as Zakat Al-Mal.
Masarat for Education and Empowering Individuals in Syria
Among the challenges thousands of students face today in completing their education due to the conditions of refuge, camps, and the lack of necessary facilities.
The idea of a free educational initiative began, offering its services to the knowledge sector and facilitating access for all groups, especially those in need, such as orphans, people with disabilities, and widowed women.
Masarat provide education through its own systems designed to accommodate the current conditions of students and meet their educational needs without discrimination but with equality for all groups: 1- An interactive educational system between students and teachers 2- A non-interactive educational system through a management platform 3- A knowledge endowment specifically for the initiative, which is a YouTube channel.
Your Zakat Al-Mal donation today enables Masarat initiative to expand the number of beneficiaries, achieving tangible results on the ground by educating more than 31,000 children to date.
Your Zakat Al-Mal donation now to Masarat initiative has a long-lasting impact.
The Prophet Muhammad, peace be upon him, said: “Every day that the sun rises, two angels descend, one of them says: ‘O Allah, give to the spender a replacement,’ and the other says: ‘O Allah, give to the withholder loss.'”
Spending in the way of Allah brings much good, and spending to care for and educate orphans in northern Syria has a multiplied effect.
