Q 938: 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 939: 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 a person paid his share from his earnings or salary after the end of his khums year, 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.
Q 940: 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 941: 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 month 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: If the money a member deposits in the fund is from his annual income during the year, what he receives to spend for the annual expenditure is not liable to khums provided that the received money is loan in a part and the rest equal to what he deposited in the fund from the income of the same year. But if the deposit was from the previous year’s income, then he must pay its khums. In case it includes both years’ income, each year has its own rule. And for the amount he receives, which was deposited from the yearly income and is in excess of the year’s expenditure, he could not specify a separate khums year to avoid its khums. He is required to fix a single khums year for the year’s total earnings and pay khums on the amount in excess of his expenditure during that year.
Q 942: 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: If the money that you lent the landlord is from your income, it is subject to khums.
Q 943: 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 and he can withdraw it from the fund at the end of his khums year, then he is liable to pay its khums.
Q 944: 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 the present the combined value of the sheep and cash is more than the total value of 98 heads of sheep and the money whosekhums was previously paid, then the excess is subject to khums.
Q 945: A person owns a property (land/house) which liable to khums. Can he pay its khums from his annual income, or must he first paykhums 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 annual income, he is required to pay its khums as well.
Q 946: 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 isspent 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 theillustrious 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 947: 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 948: Does khums apply to the principal capital and its profits?
A: If the amount of the capital is so that after paying its khums, the rest is not enough to make a business which covers one’s life expenses or a business appropriate to his/her station as per common view, it is not subject to khums.
Q 949: 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 950: 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 ofeducation 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 money saved or paid for buying shares in the cooperative if it is obtained from your own salary is liable to khums, unlike the amount given by your wife as gift. 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 951: 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 952: 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 profit is saved for spending it on necessities of life and it is spent for this purpose in the near future — say two or three months after the end of the khums year, if it cannot be spent sooner — it is not subject to khums provided that paying khums prevents him from purchasing the necessities of life. 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 very loan remains with him until the end of the khums year, he should pay khums in proportion to the paid installments.
Q 953: 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 very money obtained from yearly income is spent to purchase the construction materials needed for the house before the end of the khums year, or you want to spend it within the near future after the year’s end to construct the house, it is not subject to khums.
Q 954: 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 955: 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.
Q 956: 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 the 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 957: 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 constructed or bought the additional two floors for renting to use their proceeds for living purpose, the two floors are ruled as capital which is subject to khums.
Q 958: 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: If he uses the khums-paid wheat, he cannot exempt the equivalent new crops from khums. Then, the new crops consumed by the end of the khums year are not subject to khums, while the rest is.
Q 959: 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 960: 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: If you purchase it with the intention to sell it later, the appreciation counts as business profit, of which any amount in excess of the annual expenditure is subject to khums.
Q 961: 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 962: 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 963: 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 964: A person wanted to cultivate a barren piece of land. In it, he dug a deep well and planted some fruit trees so that he could make use of the fruits in the future. It must be noted that the trees would not have any fruits for several years and that during this period, they cost a lot. Up to now, the expenditure made by the person exceeded one million tumans. Until now, the person did not have a yearly account for khums. Now that he decided to pay khums, he calculated his assets and saw that the price of the land, well and orchard has increased several times over their original value due to inflation. Thus, if he were obliged to pay the khums based on the present price, then he would not be able to pay the amount. If the duty is to pay khums on the very land and orchard, then he would have to face a great difficulty since he bore much trouble for the land hoping that he would be able to earn his livelihood and that of his family by it. What is the duty of the person regarding his assets’ khums in this situation? And how can he calculate the khums he owes so that he could easily pay it?
A: The barren land that he developed into an orchard is subject to khums after deducting development costs. He has the choice to pay its khums from the very land itself or from its present value. Also the well, young trees and the like are all subject to khums in accordance with their fair present value. However, if he needs the land to earn his living and by paying its khums, the rest will not be enough to cover his life expenses, it is not subject to khums.
Q 965: 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 966: What is the ruling of zakāt and khums regarding the benefits and crops obtained from endowed property or land?
A: There is no khums on the endowed assets themselves. Even if it is a ‘special endowment’ (e.g. something dedicated for one’s offspring) its outcome and growth are not subject to khums at all.
There is also no zakāt on growth of the ‘general endowment’ prior to its acquisition by the beneficiaries. However, after the acquisition, zakāt becomes obligatory for the growth provided that it is also subject to other conditions which make zakāt obligatory. Paying zakāt is obligatory for the growth of a ‘special endowment’ if the share of each beneficiary reaches the threshold.
Q 967: 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 968: 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 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 unless having an amount as deposit is considered as a part of one’s ma’ūnah.
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.