Q: I was allotted immovable commercial proprty the cost of which is to be paid in 6 years [on the basis of monthly instalments]. I wish to know if zakat is payable on these deposits for purchase of immovable property.
A. Zakaat is only Fardh (compulsory) on cash that one possesses at the end of 12 Islamic months. It is not necessary to pay Zakaat on monthly instalments that have already been paid towards the costs of the property. Therefore, regardless of how much you paid in instalments, when twelve Islamic months have passed you only pay Zakaat on the amount of cash that is on hand.
Moulana Yusuf Laher
Checked by: Mufti Siraj Desai