Title: Valuation of a Plot of Land for the Purposes of Zaka'h Question: You have mentioned in one of your answers to a question that if one has a plot of land, which is sort of a saving, then zakat at the rate of 2.5% must be paid on it. My question is that which value should be used for calculating zakat: The current market value (which might be varying daily) or the value which was paid for buying the plot? I am keeping this plot with the view either to give it to my daughter as gift on her marriage or sell it and use the money for her marriage. However, my daughter is very young now and if during the period before her marriage (God Forbids) an emergency happens then I can sell the plot otherwise as well. M. Tahir Abbas Khan Kenya Answer: As you have correctly mentioned in your question, on a piece of land which is not in one's personal or business use, 2.5% of the land is to be given away as Zaka'h . The same is the case for all other assets, which are a part of one's wealth and are not under one's personal or business use. As for the method of the valuation of long-term, non-depreciable assets like land etc. is concerned, it is a matter of Ijtehad , as no specific method of valuation of such assets is prescribed by the Shari`ah . According to my understanding, for the purposes of Zaka'h , the actual current market value of the land should be determined and 2.5% of that value should be paid as Zaka'h . As for the issue of frequent fluctuations in the current market value of land, one should try to determine the market value which is as current as possible, as of the day of the year on which one calculates Zaka'h on one's wealth and assets. For instance, one may try to assess the actual current market value of his assets within ten, fifteen or twenty days of the date on which one plans to pay Zaka'h . It should, however, be kept in mind that all such issues relating to Zaka'h should actually be settled by the legislature of the Muslim state, because Zaka'h is a collective, rather than a personal law of Islam. If the legislature of the Muslim state has prescribed any particular method of valuation of assets or any particular value for assets, then the prescribed method or value should be held as effective. I hope this helps. Regards, Moiz Amjad December 8, 2002