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If a person invest real estate,that is zakat paid on rent or regional value?
Answer By Dr Zakir Naik,As far as the view of the majority of the scholars is concerned, what they say that if the land has been purchased for selling so that you make a profit then all the scholars unanimously agree that Zakaat should be given on it as we discussed in the last answer.That the moment one year is completed the land that you purchased Zakaat has to be paid on it. But if you have land and if you give it on rent, means if you buy a house and give it on rent, majority of the scholars say that Zakaat is not applicable on the value of the house. Zakaat is only applicable on the rent you receive, the moment you receive the rent and if it stays with you for a period of 1 year and if it's above the Nisaab level then you have to pay Zakaat on the rent not on the value of the house, the flat or the land. But now a days most of the people that purchase land for investment, they give it on rent so here we had a dilemma that people who purchase land mainly the purpose is investment but if they think that they'll buy the land they'll sell after 4-5 years when the price rises so but natural they don't want to keep it vacant so they keep it on rent to a person who requires to stay in that flat.
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