Zakat is payable on the properties held with an intention to sell at a future date for a profit or as an investment. However, if your intention on holding the properties changes in the current year i.e. from self use to business purpose, be honest to Allah and pay Zakat on it at the current market value from the year your intention has changed. If you have sold a property which was meant for business and have entered into an agreement of sale on the balance of money receivable on the date of Zakat calculation, Zakat is to be paid on such amount receivable. Any loans taken for purchase of property meant for business should be deducted from the nett figure before calculating Zakat. Zakat is also payable on amounts of instalments receivable on such portions after deducting loans or liabilities payable on the same.
Zakat is payable.
There is a misconception that there is no Zakat on property even if it is for business. This is not correct. However, there is no Zakat on property occupied for running your business like shop, showroom, godown, factory building, poultry shed, cattle shed etc. If any property is held jointly by two or more persons the individual must calculate Zakat on his share in the property. No matter what your business is you have to pay Zakat on all Stock in Trade.