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Practical Laws of Islam

  • Rules of Taqlīd
  • Rules on Purity
  • Prayer
  • Fasting
  • Khums
    • Gift, Present, Bank Prize, Dowry, and Inheritance
    • Loan, Monthly Salary, Insurance, and Retirement Pension
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      Loan, Monthly Salary, Insurance, and Retirement Pension
       
      Q 861: Is it obligatory for employees having a surplus remaining over their annual expenses to pay khums, considering that they owe money which is due or should be paid in installments?
      A: If the debt incurred during the year due to borrowing money for expenditure of the same year, or due to purchase of some necessities for the same year on credit, it is subtracted from the remaining income at the end of the same year provided that at the time of spending the loan on life expenditures or consuming the goods bought on credit they had an amount of income equal to the borrowed money or items. Regarding the income gained afterward, it is, by obligatory caution, not subtracted.
       
      Q 862: A loan is acquired for performing hajj al-tamattu‘, should its khums be paid before using the balance for Hajj?
      A: One is not required to pay khums on loaned money.
       
      Q 863: I have paid an amount of money to a housing foundation over a period of five years for the purpose of purchasing a piece of land to build a house for myself. However, till now no step has been taken to deliver the land, and so I want to withdraw my money from the foundation. I obtained a part of that money on loan, another part came from the sale of the house carpet, and the rest from the salary of my wife, who is a teacher. Please respond to the following questions:
      i. If I get the money back and spend it exclusively for buying land or a house, would it be subject to khums?
      ii. How much khums should I pay?
      A: In the given case that the money gained as a gift, through borrowing, or selling life necessary items is not subject to khums.
       
      Q 864: Some years ago I acquired a bank loan and deposited it in my account for one year. I could not make use of the loan, but I had to pay its monthly installments. Is this loan subject to khums?
      A: In the question, khums only applies to that portion of borrowed money whose loan installments you paid from your yearly gains by the end of the khums year.
       
      Q 865: I have an outstanding debt on the house and I will remain indebted for 12 years, please enlighten me in regard to my liability to khums, i.e. is this debt to be subtracted from the gain of the year?
      A: you are allowed to pay the installments of a loan which was spent last year for constructing a house and similar things from your gains during the year. But, if not paid, they are not subtracted from the year’s gains. The gains remained at the end of the khums year are subject to khums.
       
      Q 866: Are the books bought by a student subject to khums if he does not have any source of income and buys them with his father’s money or with a loan given to him by the university? And what if his father has not paid khums on the money used to purchase the books?
      A: The books that he buys with loaned money are not subject to khums. Those purchased with the money given to him by his father have the same rulings.
       
      Q 867: if a person borrows an amount of money and is not able to pay off the loan before the end of year, should the lender or the borrower pay its khums?
      A: The borrower does not have to pay khums on loaned money except for its amount which has been settled in installments from one’s income if at the end of the khums year it is kept untouched or invested in a business. In regard to the lender, if the money loaned was from his annual income prior to paying khums, and he can collect his money from the borrower before the end of his khums year, he has to pay khums on that money at the end of khums year. But if he is unable to collect the money before his khums year ends, he is not to pay khums now. He waits until he receives the money, then he should pay its khums immediately.
       
      Q 868: Are those who receive retirement pensions required to pay khums on their monthly salaries received throughout the year?
      A: If it remains unspent on life expences at the end of the khums year, it is subject to khums at the end of the khums year.
       
      Q 869: The government of the Islamic Republic pays a monthly salary to parents of prisoners of war during the time of their captivity. Is it subject to khums if it is saved in a bank?
      A: The said money is not subject to khums.
       
      Q 870: I owe an amount of money and at the year’s end the lender has not asked for its repayment. At the same time, I have saved an amount from my yearly income enough to pay off my debt. Is this loan excluded from the annual income or not?
      A: A debt, whether it is due to borrowing money or buying home appliances on credit and whether it is for this year or the previous years, is not subtracted from the yearly income unless is settled before the end of the khums year. Of course, it is subtracted if one had an amount of income equal to the borrowed money at the time of spending the latter on life expenses.
       
      Q 871: Is the amount left after a person’s annual expense liable to khums if he is in debt at the year’s end and has the opportunity to pay off the debt in several years?
      A: Whether the debt is due immediately or deferred, it is not excluded from the annual income. However, if at the time of spending the borrowed money on life expenses, the income exists, this amount can be subtracted.
       
      Q 872: Is money paid by insurance companies to the insured as a result of loss or injury subject to khums?
      A: The money, paid to the insured by insurance companies as compensation for loss, such as indemnity in the car/crop insurance, and property insurance against fire, is considered as one's income. Therefore, one must pay khums on it unless it is spent on expenses of life by the end of khums year.
       
      Q 873: Last year I borrowed some money with which I bought land, anticipating that its value would increase and planning to sell it along with my present house to be able to solve my housing problem in the future. Now, at the end of my khums year, can I exclude that loan from the last year’s income to which khums is applicable?
      A: On the assumption that the money borrowed is used to buy land with the intent of selling it in the future, the borrowed sum is not subtracted from the annual income of the year in which it is borrowed. The entire amount of the yearly income after deducting living expenses is liable to khums.
       
      Q 874: I borrowed from a bank an amount of money whose due date is after my khums year. I am apprehensive that if I do not pay it off this year, I will not be able to do it next year. What is my obligation in regard to paying khums at the end of khums year?
      A: If you spend the annual income to pay off the debt before the year’s end and the loan was not for a capital increase, it is not liable to khums. But if the loan is for increasing the capital or you want to save the annual income, then you are obliged to pay its khums.
       
      Q 875: For renting a house, people usually give a sum of money in advance. If this money is obtained from one’s earnings and remains with the house owner for several years, is it obligatory to pay its khums immediately after receiving it? And what if one wants to rent another house with this very money?
      A: It is subject to khums but if one needs this money for renting another house, he can postpone paying its khums till he meets his needs.

       

    • Selling a House, Means of Transportation, and Lands
    • Treasure, Mine, and Ḥalāl Mixed With Ḥarām Property
    • Ma’ūnah
    • Mudāwarah, Muṣālaḥah, and Khums Mixed with other Things
    • Capital
    • The Method of Calculating Khums
    • Determining the Khums Year
    • The Authority in Charge of Khums
    • Sayyids’ Share and How to Be Considered as a Sayyid
    • Areas in which Khums Is Spent
    • Miscellaneous Issues Related to Khums
    • Anfāl
  • Jihad
  • Enjoining the Good and Forbidding Evil
  • Ḥarām Gains
  • Chess and Gambling Instruments
  • Music and Ghinā’
  • Dancing
  • Clapping
  • Non-maḥrams’ Pictures and Films
  • Satellite Television Equipment
  • Theatre and Cinema
  • Painting and Sculpture
  • Magic, Conjuring, and Evocation of Spirits and Jinn
  • Hypnosis
  • Lottery
  • Bribery
  • Medical Issues
  • Teaching, Learning and Their Proprieties
  • Copyrights
  • Dealing with non-Muslims
  • Working for Oppressive States
  • Clothing
  • Treating the West
  • Smoking and Narcotics
  • Shaving the Beard
  • Attending Gatherings of Debauchery
  • Writing Supplications and Istikhārah
  • Religious Events
  • Hoarding and Extravagance
  • Buying and Selling
  • Miscellaneous Issues in Business
  • Rules Concerning Ribā
  • Right of Pre-emption
  • Hiring, Renting, and Lease
  • Surety
  • Pawning and Mortgaging
  • Partnership
  • Presents and Gifts
  • Debt and Loan
  • Ṣulḥ
  • Power of Attorney
  • Mustaḥabb Alms
  • Deposits and Loaned Properties
  • Leaving a Will
  • Usurpation
  • Placement under Guardianship and Signs of Maturity
  • Silent Partnership
  • Banking
  • State Property
  • Endowments
  • Rules Concerning Graveyards
  • Glossary
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