Slms am I right to say that zakat is only needing paying on the rental income of the property and not the property itself unless I am selling the property and have made a profit on the sale. Please kindly confirm
Wasalam
May Allah bless you.
If you purchase the house for letting, then yes, your zakat will be due on the residual income on your zakat day.
If you buy a house for the purpose of selling, then zakat is due on the full value of the house on your zakat day. This is applicable if you haven’t sold the property by the time your zakat day comes.
If you sell the house, and you have the cash amount with you on your zakat day, then zakat will be due on the full amount.
In both cases it does not matter if you made a profit or not.
Note: zakat is due on the value of the house if the intention of selling was present at the time of purchase i.e. if you decide to sell your personal house, then there is no zakat on its value, but only on the cash gained from selling.
And Allah knows best!