Factors that make Zakaat compulsory

Q: If on the 1st of Muharram a person had the nisaab amount and then the next year on the 1st of Muharram he had 1 pence less than the nisaab, what does he do?

Q: I have taken over a running business in January of this year (2021). I am owing on this business for the next three years. With regards to zakaat, do I commence paying immediately or after 1 lunar year?

Also, for the merchandise on hand, when calculating zakaat do I use the cost price or the selling price of the goods?

Q:

1. How much zakaat needs to be paid on fruit trees, which have been purchased in order to make profits on selling the fruits?

2. How much zakaat needs to be paid on a bee hive, which has been bought and rented out to a farmer?

3. How do I pay zakaat on a solar panel which generates revenue from selling electricity produced?

Q: We got a land as inheritance from my father: a portion of which he inherited from his mother and the rest of the land was purchased by my father from his heirs i.e my uncles. His mother also received the land as inheritance.

Zaid is living on this land and whatever vegetables, crops are grown there, I am responsible for providing the seeds and other expenses. Zaid looks after them, sells them in the market and then the profit is distributed as a 50 percent share. From the 50 percent that we receive, it is further divided into 8 parts, one part is received by 3 sisters and my mother each. While 2,2 parts belong to me and my brother.

Previously rainfall was the source of water for this land but almost 6 months ago we purchased a motor to draw water from the small natural water stream that passes through the land. The land is not plain, instead it has many small hills in it so the irrigated portion is quite less. Sometimes I get only a little portion of vegetables that cannot be sold so its used at home.

I want to inquire how to give ushar on the produce from this land?

Q:

1. I have a fish farm. How do I pay zakaat on it ? Do I have to pay zakaat on the amount of fish I have purchased for or do I have to pay on the current market price of all the fish I have?

2. What if most of the fish died and I am unable to know the exact amount of fish in the farm?

Q: Zaid and Ahmad are partners in a business. Zaid wishes to sell his share to his partner for R10 million. The payment terms agreed upon are that half the amount will be paid cash and the other half will be paid AFTER 48 months in 12 equal monthly installments. In other words, for the first 48 months there will be no installment paid. The question refers to the zakaat obligation during this time. Is Zaid liable to pay zakat on the R5 million owing to him during these 48 months?

Q: Kindly explain the difference between “debts owed to a person and monies loaned to people”.

As I understand, zakaat on the loan will be paid by the one who has given the loan and not by the one who receives the loan. 

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?