['Aalim Network QR] Khums

[Ummulbanin <workshop@popmail.dircon.co.uk>]

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|       In the Name of Allah, the Compassionate, the All-Merciful       |\
|  Greeting of Allah be upon Muhammad and the pure members of his House |\
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Assalamu 'Alaykum

The following questions on Khums were kindly answered by Dr Takim.

Salaams & Duas
Ummulbanin Merali - Moderator - 'Aalim Network
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QUESTION 1:

Please can you throw some light on a taxing problem that I have regarding
working out the khums due. 
My only assets are the various savings accounts I have. For simplicity Say I had 
£1000 at the end of my last Khums Year. The £1000 also includes interest earned. 
I have to pay £200 khums - ie 20%. Is this correct?. 

ANSWER:

Assuming that you have not had savings before, then you will pay £200 for
the savings of £1,000.
			---------------------------

QUESTION 2: 

Does khums become obligatory on interest?. 

ANSWER:

Yes, since it is also a form of earning
			---------------------------

QUESTION 3:

For this khums year, for simplicity say my savings have increased to £5000
including interest and bonus shares received from share flotation. Now do I
pay khums on the full £5000 or on the increase from last year - ie on £4000. 

ANSWER:

Since you have already paid on the £1000.00 you will only pay on the
increment in your savings, i.e. £4,000.00
			---------------------------

QUESTION 4:

Now suppose that over the year the savings balance never went below £1000,
does that make a difference. If the balance went to zero during the year,
does it make a difference or not ?

ANSWER:

If the savings balance goes to zero and then, during the year, it increases
again due to increased trade, then you will pay khums on the savings which
you have saved during that year.
			---------------------------

QUESTION 5:

Is khums to be worked on annual dates only, irrespective on the fluctuations on 
the saving balance in the interim. 

ANSWER:

The consideration of an annual date or year is important because, in most
cases, the surplus or deficit become clear at the end of the year. That is
why it is advisable to fix an annual date to calculate the khums to be paid.

However khums can also be paid as and when a person earns profit during a
year, but it is also permissible to delay the khums until the end of the year.  
			---------------------------

QUESTION 6:

What is the definition of savings for the purposes of khums.  

ANSWER:

We define savings as the profit or surplus after deducting the annual
expenditure from one's annual income. The expenses include both household &
commercial expenditure.

Please remember me in your prayers. May Allah guide us all to His path, Amin.

Your Brother in Islam

Liyakatali Takim