Question: A man owns three parcels of land: one was granted to him, another he purchased but intends to sell—without yet knowing the sale price—and a third he has already developed. Must he pay zakat on all three parcels?

Answer: Any parcel he holds with the intention of permanent ownership as real estate is exempt from zakat—that includes the one he plans to build on and the one he is retaining for future construction. As for the parcel he intends to sell, when he actually sells it and a full lunar year has passed over its price while it remains his property, he must pay zakat on that amount. Zakat is not due until he becomes entitled to the proceeds; once the sale contract is concluded and a year has elapsed over the value, zakat becomes obligatory even if he has not yet physically received the money, because ownership of the sum transfers to him by virtue of the contract.

Zakat on Jewelry

Question: How should a woman calculate the zakat on her jewelry? Should it be based on market value or on weight, and must she pay it in gold of the same type or may she pay its equivalent in cash? What is the niṣāb and how much zakat is due?

Answer: When jewelry is set aside for trade, or when it is kept but not intended for personal use—kept merely in storage, for example—there is unanimous agreement among the scholars that zakat is obligatory on it. If it is merchandise offered for sale, zakat is calculated according to its market value: it is appraised, and one quarter of one tenth (2.5 percent) of that value is paid.