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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
    • 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
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      Capital
       
      Q 937: A cooperative of employees in the department of education was founded in 1986. The company’s capital was formed with the shares of a number of employees and each paid an amount of 100 tumans. Initially, the company’s capital was small. But presently, due to the increase in the number of members, the company’s (working) capital has reached 18 million tumans in addition to the vehicles owned by the cooperative. The company’s net profits are divided proportionally among the shareholders. Every shareholder can easily withdraw his share and settle his account with the cooperative. Since the khums of the capital and dividends has not been paid till now, as the president of the management committee, may I pay the khums pertaining to the company’s account? Does it require the approval of the shareholders?
      A: Paying khums on the partnership’s capital and its profits is the duty of each shareholder in regard to his share in the total assets of the company. Taking charge of its payment by the chief of the management committee depends on obtaining the permission and authorization from the shareholders.
       
      Q 938: A group of people want to establish a ribā-free loan fund in order to provide loans to each other in times of necessity. In addition to the initial contribution, every member is required to pay a monthly amount to increase the capital. Will you kindly explain how each member is to calculate his khums? Moreover, as the fund’s capital is continually loaned out to the members, how is it possible to pay its khums?
      A: If every person has paid his share using the earnings on which the khums year has passed, he must pay its khums. But if he paid his share during the khums year, then khums should be paid at the end of the year if he is able to withdraw the money. Otherwise, before he withdraws it from the fund he is not liable to khums, but when the withdrawal is possible, he should pay its khums immediately.
       
      Q 939: Is a ribā-free loan fund a separate legal entity? If it does, are its profits liable to khums? If it is not a separate legal entity, how is its khums paid?
      A: If the capital of the fund belongs to individuals who form a partnership, then each shareholder’s profit is considered his personal property and he will be liable to its khums if it exceeds his annual expenditures. However, if the capital of the fund does not belong to a person or persons, e.g. it belongs to a public endowment; the profits are not liable to khums.
       
      Q 940: A group of twelve pious people agreed to deposit a certain sum of money (20 dinars, for instance) in a joint fund at the beginning of every month. Each month a member takes the amount and uses it for his private purposes. This process goes on for twelve months when it is the turn of the last person. It means that he will receive only what he has contributed in that period, i.e. 240 dinars. Is he liable to pay khums on that amount or is it considered part of his annual expenditure? And in case this person has a fixed date for the end of his khums year and part of the money he received is still in his possession at the end of the year, may he fix a separate khums year for this portion to avoid paying khums?
      A: The money a member receives from the fund is divided into three portions: Frist the amount he paid from the income of the previous year, second the amount he paid from the income of the current year and third the amount he will pay in the next year to settle what he has received. The first portion is liable to khums once he receives. As for the second portion, it is not subject to khums if he spends it on life expenditures before the end of current khums year, while if it remains untouched till the end of this year, he should pay khums on it and cannot consider a separate khums year for it. As for the third portion, it is considered as a loan which is not subject to khums now.
       
      Q 941: I rented a house for which I paid a deposit called rahn. Am I liable to khums on the rahn money after the elapse of one year?
      A: The money from your income that you lent the landlord is subject to khums.
       
      Q 942: We require a big budget in order to undertake development projects, and it is difficult to pay the entire cost all at once. Therefore, we have established a development fund and make monthly deposits in this fund. After collecting the capital, we spend it on these projects. Is khums applicable to this saved amount?
      A: If the money paid by each person is obtained from his yearly earnings and remains in his ownership until it is spent for the projects, then he is liable to pay its khums.
       
      Q 943: Several years ago I made an assessment of my possessions and fixed a date for my khums year. At that time, I had 98 heads of khums-paid sheep, together with some cash and a motorcycle. In the course of a few years due to gradual sale, the number of sheep was decreased and accordingly the money was increased. At the moment, the number of sheep is sixty, and I also have some cash. Do I have to pay khums on this money or on the increase?
      A: If at present the combined value of the sheep and cash is more than the total value of 98 heads of sheep and the money whose khums was previously paid (of course, after taking the inflation rate into account), then the excess is subject to khums.
       
      Q 944: A person owns a property (land/house) which liable to khums. Can he pay its khums from his annual income, or must he first pay khums on the profits and then pay the khums from the remainder of the profits after khums is paid?
      A: If he wants to pay the outstanding khums from the income of this khums year, he is required to pay the khums on the amount he is paying now as khums as well.
       
      Q 945: We have saved some assets for the children of the martyrs from the profits of factories, farmlands, etc., which belonged to some venerable martyrs, through which they were sustaining their living, or from the pensions that the Martyrs’ Foundation pays the martyr’s small children. Occasionally, part of these assets is spent to provide for their necessary needs. Please explain if these profits and saved pensions are subject to khums, or should it be deferred until they grow up?
      A: What was transferred as inheritance to the children of the illustrious martyrs from their fathers or is paid to them by the Martyrs’ Foundation is not subject to khums. But as to the profits made out of the inherited assets, or out of the assets given to them by the Martyr’s Foundation as gifts and remaining in their ownership until they reach the age of shar‘ī puberty, it is obligatory for each of them, by way of caution, to pay their khums after reaching the said age.
       
      Q 946: Does khums apply to the money that one spends on investments and business transactions?
      A: What is spent in obtaining profits from capital, that is, the costs of storage, transportation, weighing, middleman, etc. is excluded from that year’s earnings and is not subject to khums.
       
      Q 947: Does khums apply to the principal capital and its profits?
      A: If after paying the khums, doing business with the remainder does not cover his living expenses or does not suit his social status, it is not liable to khums.
       
      Q 948: Someone owns gold coins in a quantity reaching zakāt threshold, is it liable to khums, in addition to zakāt?
      A: If it is considered a part of their business profit, it is subject to khums like other types of income.
       
      Q 949: My wife and I work at the ministry of education and she regularly gives me her monthly salary as a gift. I have spent an amount to buy shares of a farming cooperative of the department of education employees, of which I am a member. I do not remember whether that amount was from my own salary or from my wife’s. As the savings of my wife’s salary at the end of my khums year are less than the total amount of her yearly earnings, is the amount mentioned liable to khums?
      A: The amount from your own salary that you saved or spent on buying shares in the cooperative is liable to khums, unlike the amount given by your wife as a gift, provided that it is not a formal and fake gift and is within your station. Similarly, the amount about which you are uncertain whether it is from your own salary or from your wife’s gift is not liable to khums, although it is a caution to pay its khums or make muṣālaḥah its khums for an amount of money.
       
      Q 950: Is the money that remains in a bank as a ribā-free loan for two years liable to khums?
      A: All savings from annual income are subject to khums only once, and depositing it in a bank as a ribā-free loan does not exempt it from khums. Of course, as long as one does not recover it from the borrower — in the case he is not able to recover it at the end of khums year — one is not liable to its khums.

       

      Q 951: A person goes through a difficult time and imposes the same thing upon his family to save some money or acquires a loan to solve his living problems. At end of the year, the saved or loaned money is left over, does khums apply to it or not?
      A: If the income is saved for spending it on necessities of life and it is spent for this purpose in the near future, say two or three days after the end of the khums year, it is not subject to khums. As for the loan, paying its khums is not the responsibility of the borrower. However, if he is paying its installments from his annual income and the loan remains with him until the end of the khums year, he should pay khums in proportion to the paid installments.
       
      Q 952: Two years ago I purchased a piece of land to build a house. If I save some money from my daily expenditures to build my house, then would khums apply to this amount at the end of the year?
      A: If the money obtained from yearly income is spent before the end of the khums year to purchase the construction materials needed for the house, or you are going to spend it on constructing the house in the near future, it is not subject to khums.
       
      Q 953: I want to get married. I have invested some money in the university to bring a profit. Is there any way to make muṣālaḥah on its khums?
      A: If the above mentioned money is from business profit and in your possession up to the end of the khums year, then it is subject to khums. One cannot make muṣālaḥah on definite khums.
       
      Q 954: Last year the Hajj Travel Agency purchased my equipment needed for the caravan of Hajj. I received the sale money this summer which is equal to 214,000 tumans. On top of that, during the previous year, I acquired a further 80,000 tumans. It must be pointed out that I have specified a fixed date for my khums year and that I always take khums out on my surplus possessions. Furthermore, I needed the equipment in question during the Hajj days when I was in charge of administering the pilgrims’ caravan. Is it necessary for me now to pay khums on the sale money, after taking into account that the price has increased considerably, or to pay the khums only on the difference in the value?
      A: If the above mentioned items were purchased by money on which khums has been paid, then there is no khums on it. If not, then it would be obligatory to pay its khums. In both cases, the appreciation after deducting the inflation rate is considered as the income of year of receipt.
       
      Q 955: I am a shopkeeper and every year I assess the whole stock and cash I have. There are some things which are not sold by the end of the specified khums year. Is it obligatory to pay khums on those items which have not been sold by that time, or is it paid when the things are sold? However, if the khums is taken out on them prior to their sale and they are sold later, then how should I do the next year’s khums assessment? Furthermore, if I do not sell the items and their value changes, then what is the ruling regarding this situation?
      A: For the time being, khums is not obligatory on the increased price of things that have not been sold by the end of the year and no one is found to buy them. In fact, the profits acquired from their sale in the future would count as that of the sale year. However, the items, whose price increased and there was a potential buyer for them during the year yet to gain more profit you did not sell them by the end of the year, khums would apply to their increased value at the beginning of the next year. In this case, these items — at the price estimated at the year’s end and khums on the appreciation is paid — would be exempted from khums in the next year.
       
      Q 956: Three brothers purchased a house consisting of three floors. They live in one of the floors while the other two floors are rented. Are the two rented floors subject to khums or not? Are these floors considered as part of their annual expenditure?
      A: If they purchased the house from their yearly income for the purpose of living but now they rent the two floors out of need to provide their living expenditures, the two floors are not subject to khums. But if they bought the additional two floors for renting to use their proceeds for living purpose, the two floors are ruled as capital and are subject to khums.
       
      Q 957: A person had some wheat on which he had paid khums. After harvesting new crops, he used the khums-paid wheat and replaced it with the new wheat. He did so for several years. Is the new wheat — as a replacement for the khums-paid wheat — subject to khums as a whole or only part of it?
      A: According to the given situation that the khums-paid wheat existed while harvesting the new crops, he may replace it.
       
      Q 958: By the grace of Allah, I withdraw khums from my income every year. However, during the years I did so I always had doubts about the calculation. What is the ruling regarding this doubt? Should I calculate all my cash this year or should I ignore the doubt?
      A: If you doubt whether the khums assessment of your previous years’ income was correct or not, then you are not to pay attention to this doubt. Furthermore, you have no duty to pay khums again. However, if you doubt whether a particular income relates to the previous years from which khums has been paid or to the present year from which khums has not yet been paid, then it is obligatory for you to pay its khums as a caution unless you verify that its khums has already been paid.

       

      Q 959: I purchase, for example, a carpet for 10000 tumans with money on which khums has already paid. After a while I sell it for 15000 tumans. Is the appreciation of the khums-paid carpet, i.e., 5000 tumans, considered as income which is subject to khums?
      A: The appreciation (after subtracting the inflation) counts as business profit, of which any amount in excess of the annual expenditure is subject to khums.
       
      Q 960: An individual specifies a separate date of the khums year for each and every single income he makes. Is he allowed to pay the khums of some profit whose year has ended from the profit whose year has not ended? And what if he is certain that these profits will remain untouched till the end of the year, i.e. not being used for his annual expenditure?
      A: When he wants to pay khums on the profits of one business from the profits of the other, he should pay khums on the paid money as well. Regarding those incomes from which nothing will be spent for living expenses until the end of the year, he has the choice either to pay their khums directly when he receives them or to wait until the end of the khums year.
       
      Q 961: A person owns property consisting of two floors. He lives on the upper floor while giving the lower part to another person to live in. The owner takes some money from that person in the form of a loan and does not charge the tenant at all. Would this borrowed amount be liable to khums?
      A: There is no shar‘ī reason for offering free use of the house for a loan acquired from the tenant. In any case, the borrowed money is not subject to khums.
       
      Q 962: I have rented a place for a specified monthly rent from the Endowments Office and the person in charge of it to make a clinic. At the time when I made my request to rent that property, I was asked to make a payment. Would I have to pay any khums on that amount of money, taking into consideration that the money which I have paid is no longer mine and I will not own it again?
      A: If the payment is considered as transferring sarqoflī and the money was obtained from your income, it is obligatory for you to pay its khums.
       
      Q 963: If a person gives his dilapidated house to a constructor who builds several apartments on it and gives the original owner some of them in return, what is the ruling regarding the khums on the additional apartments?
      A: There are several cases for this issue:
      i. If he does that for business purposes (i.e. selling the additional apartments to make money), in case that there exists a buyer for these apartments, the appreciation, after subtracting the inflation, is subject to khums.
      ii. If the apartments he receives are needed by him and compatible with his station, they are not subject to khums.
      iii. If he has no business purpose but wants to rent them out and make money from renting, they are not liable to khums until they are sold. When he sells them, the appreciation - after subtracting the original price and the inflation - is ruled as the income of the sale year.
       
      Q 964: An individual does not have a yearly account for khums and now he wants to pay khums and have a yearly account. He has been in debt from the time of his marriage up to now. How should he account for the khums?
      A: If he has never had any income in excess of his annual expenditure, he is not obliged to pay anything with regard to the past.
       
      Q 965: What is the ruling of zakāt and khums regarding the benefits and crops obtained from endowed property or land?
      A: There is no khums at all on the endowed assets themselves, even if it is a ‘special endowment’1. Even its profit and growth2 are not subject to khums unless it is in the form of gaining.
      There is also no zakāt on growth of the ‘public endowment’ prior to its acquisition by the beneficiaries. However, after the acquisition, zakāt becomes obligatory for the growth provided that other conditions which make zakāt obligatory are met as well. Paying zakāt is obligatory for the growth of a ‘special endowment’ if the share of each beneficiary reaches the threshold.
       
      Q 966: Are sayyids’ and Imam’s shares of khums applicable to the children’s income?
      A: According to obligatory caution, after they reach the age of shar‘ī puberty they should pay khums on their past earnings if they still own them.
       
      Q 967: Is khums applicable to the instruments used in one’s profession?
      A: Tools and instruments used to earn a livelihood are ruled as capital, i.e. if they are obtained from one’s income, paying their khums is obligatory.
       
      Q 968: Recently due to an agreement between Haj Organisation and the Bank Melli of Iran, those who want to register their names to go to haj deposit one million tumans as silent partnership in the bank. According to this contract at the end of each year the bank adds 17 per cent to the amount as profit for silent partnership. The Haj Organisation only sends those who deposit this amount as mentioned and after about three years sends them to haj. Before being sent to haj, the person gets his money plus the profits and deposits it in the account of Haj Organisation. As it is a written contract and nothing is said as the details of the contract orally, what is the rule on the profits?
      A: Banking transactions through written contract as mentioned above is no problem and the profit gained from silent partnership contract is ḥalāl. The depositor should pay khums on the principal if it was salary/profit of business on which he has not paid khums. The profits paid by the bank is considered as the revenue of the year of the receipt and is not subject to khums if it was not receivable before the year of going to haj and it is going to be spent on haj expenses during the very year of receipt.
       
      Q 969: An employee’s end of khums year coincides with the end of the 12th month. Each year they receive their last salary nearly 5 days before the end that month and spend it in the 1st month of the next year. Is it subject to khums?
      A: Any salary acquired prior to the end of the year is subject to khums unless it is paid for annual expenditure before the khums year ends. Of course, if having an amount of money as saving is considered as a part of ma’ūnah, it is not subject to khums.
       
      Q 970: Many university students save a portion of their scholarship to solve their future problems of life which amounts to a great deal of money. Is it subject to khums?
      A: Scholarship is not subject to khums.

      1. If the right of benefiting from a place or thing (which is hold as waqf) is confined to particular individuals, like one's children, it is called 'special endowment', while if the beneficiaries are all people, it is called 'public endowment'.

      2. There are two types of growth or profit; the connected growth, like the increase in the weight of sheep and disconnected like the lamb it delivers.

       

    • 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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