Factors that make Zakaat compulsory

Q: If a pension is released to an employee at the time of retirement and according to statutory law you can only cash in 1/3 of it, while the remaining 2/3 has to be re-invested in a similar fund (money never coming into your hands of the retiree) directly being re-invested on behalf of the retiree to receive a monthly pension from the investment. What are the zakaat implications on the following:

1. Is zakaat payable on the 1/3, if the retiree opt to take the 1/3?

2. Is zakaat payable on the 1/3 if the retiree opt NOT to take the 1/3?

3. Is zakaat payable on the remaining portion of the reinvested amount?

4. Is zakaat payable on the monthly income derived from the re-invested amount?

Q: I have query on zakaat for land plots. I live overseas. I don’t own any home in my home country nor overseas. I have a total 9 plots in my home country as per below. Currently, I do not have any intention to sell these plots, unless until in future if I need cash/funds for my kids (a son and a daughter) higher education, marriage, home construction or any emergency. Kindly advise if zakaat is payable on any of these plots (and what percent is payable).

Plot #1 & 2: These are two residential plots. We plan that whenever we go back to our home country, we will construct our home on these two plots.

Plot #3: I have intention to build a home on this and gift it to my daughter on her marriage.

Plot #4 & 5: If I have finance available in future, I will construct homes and will put these for rental income (my retirement income plan). Or if my sister wants to live in one of them, she can take one.

Plot #6 & 7: There are two options in my mind:

(a) To buy land (and construct a home) near my parents in law home (this area is expensive). So I may sell these two plots (6&7) in order to purchase a new land near my parents in law place. If I go for this option, I will not construct a home on the above said plot 1&2. However, possibility of this option (a) is low, as it requires a lot more financing.

(b) If I have finance available in future, I will construct homes and will put these properties for rental income (my retirement income plan).

Plot #8 & 9: A residential and a commercial plot. It is currently new city development in progress and it is expected to be future business hub in next 1 or 2 decades. So in case, if I or my son in future need to move/live in this new city (for job/business purposes), so we can use these plots for ourselves living/business.

Q: I work in Saudi Arabia. I purchased one plot in India in 2011 with the intention of constructing a house or selling it later. Another plot I purchased in 2015 with the intention to build a house. Till now I did not start construction on any one of these two plots. Do I have to pay zakaat for these two plots?

Q: I have a retirement annuity. Do I discharge Zakaat on the capital amount or do I discharge on the maturity amount?

Q:

1. How much percent from one's earnings or savings has to be paid for zakaat?

2. Is zakaat obligatory on one who does not work, such as kids, who have savings from their pocket money or other ways?

3. When is zakaat due to be paid, before Ramadhaan or during Ramadhaan?

Q: At my previous job, some years back there was a provident fund which I contributed a certain percentage and the company contributed a certain percentage. However after I left that job I forgot about that money and now while trying to take it out from the fund, I am experiencing difficulties as many years passed by and the account became redundant. Do I have to pay zakaat on that amount.

Q: At work, we are allowed to accumulate our leave days and may also take the cash money for it at any time. Do I have to pay zakaat on these leave days, as there is a monetary value to it?

Q: I bought a plot but I did not got possession of it. Can you advise me if I have to pay zakaat on this plot?

Q: I had an agreement with a government department since 2004 to supply them with parts (quantity of 30) and they took 15 parts from me in 2005. They did not pay the amount for the 15 parts. The remaining quantity was held up in our stock.

After about 14 years, now they picked up the remaing quantity of 15 parts, and then they paid the whole amount of 30 parts.

Is zakaat due on this money when it is received? Or is zakaat due on the last 14 years?

Q: I purchased a house five years back using our company's house loan policy. After five years the company offered us to take the top-up on the loan based on the current market value of the house. Now with that top up money I purchased another plot.

My question is; do I need to pay zakaat on the land I had purchased? If yes then what is the method, should I take the current market value of the plot for calculating zakaat or should I take the amount I paid as an installment against the top up?