Factors that make Zakaat compulsory

Q: I purchased a piece of land (the land was not yet ready for construction) to construct a house on it when I have money and I want to give it on rent. Is zakaat payable or not on that piece of land?

Q: I have wealth more than nisaab (R50 000) that makes zakaat compulsory upon myself. I took a loan from a relative (R1.2m) to purchase a house. I will be repaying him over monthly installments (R10 000) over the next 10 years. Hence, in essence, my debt is more than my assets.

1. How do I calculate my zakaat?

2. Does this make me a recipient of zakaat?

Q: We are three brothers living in one house but due to some clashes a few years back, two of us decided to move out of that house. We bought some land quickly with the intention of building a house on it. But then things settled down with our third brother and now all three of us are living in the same old house.

For the land that we two brothers bought, we have no immediate plan to build a house and it is there just in case one of us loses his job so he may start a business after selling that land.

Do I have to pay to zakaat on that land as I bought it with the intention of building a house but right now we might sell it in the future if anyone’s financial situation becomes tight?

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.