Financial matters

It is Haraam to pay interest, whether to Kuffar or to Muslims. However under exceptional, and emergency circumstances, paying interest may be allowed. The particular circumstances must be clarified with Marje' in order to get clearance.

For example if you do not have your own house or flat and want to buy one but you can only pay for through a mortgage, for which you have to pay interest, then you may get a mortgage. However under such circumstances there are a number of points to consider:

It can be seen that the above points and such like, these are in aid of not paying interest, as it is Haraam.

As it is mentioned above, the above ruling is only allowed for extreme and exceptional circumstances, therefore if for example you do have a house or flat but wish to buy another property, through the interest-based mortgage, for investment purposes, then this is not allowed AT ALL and it is HARAM.

It is allowed to receive interest from the Kuffar, such as receiving interest for bank accounts, but you may not negotiate with a bank for a higher interest rate for your money.

Question: Jizyah: who is it applicable to?

Are people who follow faiths like idol worshippers, or Zoroastrians, or non-Ahl-ul-Kitab people's also included in the scheme of Jizyah?

Do they have the right to be protected by an Islamic state and practise their "religion" even if it is totally contrary to Islam in fundamentals like the oneness of Allah (swt), or is it incumbent upon the rulers to tell them to either accept Islam or Ahl-ul-kitab and if not declare war on them?

Answer

The idol worshippers and Zoroastrians, or non-Ahl-ul-Kitab are also included in the Jizyah scheme.

Yes they do have the right to be protected by the Islamic state and practice their religion – but they would not be allowed to publicise for their religions. Having agreed to pay the Jizyah to the Islamic state, the ruler of the state then may not force them to accept Islam or declare war against them.

There is useful presentation of this matter in the book "Islamic System of Government" the English translation of which is available on our site. - in the books section.

Question: Hadith and Zakat

1. How does the left hand NOT KNOW what the right hand does in regards to the hadith below?

"Do not give away alms when the people are witnessing and watching so that they may consider you a pious one, so if you did that you have received your reward.

But if you gave it away (in manner) that you left hand does not become aware of it when you give it by your right hand. So then the one (Allah) for whom you have given it away secretly, will give you it's reward and remuneration in the presence of witnesses and evidences on the day when not being aware of the people about your almsgiving will not harm you. (Resurrection day)."

Tuhaf-ul-Uqul, p. 305 in "Fascinating Discourses of (Fourteen Infallibles (a.s.))" p. 164 Compilation by Islamic Propagation Organisation (international Relations Dept. Turkey)

2. When writing an Islamic Will could you please tell me how much Zakat and Khums need to be paid, and how/who to?

"To give with the right hand such that the left does not know about it" is a metaphoric expression. It is highly emphasised in Islam that when you do a good deed or a favour to an individual, it should be done without publicising it. This is so that the honour and dignity of the individual concerned is protected. It should be done in the most discrete manner, to the extent that if you give something with the right hand, the left hand would not find out about. And all of this is in aide of the dignity of the other person.

[Unless someone has not paid any Khums and Zakat during his life and wishes to include this in his will, as he is expecting to pass away, for some reasons, soon.]

The Zakat is applicable only to nine items. These are Wheat, Barley, Dates, Raisins, Gold, Silver, Camels, Cows, and Sheep. Then Zakat is only applicable to these items if above certain limit in each particular case. For details see al-Fiqh series, volumes 29-32, the book of Zakat. Therefore if you do not have these items, or if you do but not up to the threshold level, then you are not required to pay Zakat.

As for the payment of Khums, if you are paying the Khums for the first time, then you have to work out the value of all your personal belongings. [If the house you live in, for example, belongs to your husband or father, then your are not liable for it.] Having worked out the amount if you are able to pay off the Khums (20% of current value) for your belongings then you do so, and if not you need to come to 'settlement' with your Marje' or his representative. In settlement you may end up paying a lesser amount than the normal rate, say 10%.

As for the calculation of the Khums on your annual income, the Khums is applicable to the un-Khumsed, superfluous income or gains you have made as of a particular date you set as the start/end of your Khums year. If, say, your superfluous income is $1000 at the end of your Khums year, then the Khums is 20% of the amount, which is $200, and the remaining $800 is referred as Khumsed capital, which is no longer liable to any Khums in the future. So if by the end of the following year you had $2800, then the amount that is liable to Khums is only the $2000, since the other $800 is already Khumsed, and therefore the amount of Khums for the $2000 is $400. So at the end of this Khums year, the total amount of your Khumsed capital is $1600+$800=$2400. Now if by the end of the following Khums year, your superfluous capital is $2400 or less, then you are not liable to any Khums payment as your un-Khumsed income is $0 or less. For the Khums calculation of the subsequent year, your Khumsed capital would be the $2400 or whatever (lesser amount) it may be.

Gifts are only liable to Khums if they are not used by the end of the Khums year. So if you are given gold and jewellery gifts and you use them during current Khums year, then you are not liable for their Khums at the end of the Khums year.

What is the method of paying Khums?

I tried my best to understand the criteria of paying Khums but all in vain. Please try to explain with an example. And here, I ask through an example.

Example) Suppose my annual income is $1000 and suppose this year starts from 1st of January. Now is it obligatory to pay 20% Khums right on the start of year? Or is it obligatory to pay Khums at the end of year when say 50% of the amount ($500) has consumed? Is it obligatory to pay Khums on left amount that is half of the actual amount? Please Consider this example for Zakat too...

Q1) On which things, Khums and Zakat must be paid?

Q2) Which people receive Khums and Zakat?

Q3) Can I distribute Zakat and Khums myself? Please explain Both the cases.

Q4) A poor Sayyid in our area, specially requests me to pay considerable amount of Khums to him every year. Can I rely on his words when there are some Muslims who claim that he lies.

Q5) If I can't distribute Khums and Zakat myself, then who will collect these from me?

Q6) Can Zakat be paid to our relatives? such as uncle, aunt, nephew, niece, grandson who are poor.

Q7) Is it obligatory on a Sayyid to pay Khums or he is free form this order?

Q8) Can we delay paying Zakat or Khums with the intention to pay it after 2 or 3 years collectively? The reason behind this is nothing.

Q9) Suppose that my father had not paid Zakat or Khums in his lifetime for, say, 5 years, in spite of his savings. So can I pay that amount of Zakat or Khums on the behalf of my father? 1) If I know that amount? 2) If I'm unaware of the amount but I want to pay Zakat or Khums so that my father can feel free in his Grave. Is it possible?

Q10) What are the "Waajibaat" on a Muslim other then Khums and Zakat, which he must pay in his lifetime?

Q11) Can Khums and Zakat be given on demand of the poor Muslims and poor Sayyids respectively?

Q12) Is it a Hukm of Shari'ah to pay Zakat on horses? I have read in a book that Zakat was collected on horses by Umar bin Khattab during his reign and it is not the Prophetic Sunnah!!! ("Falsafa-e-Islam" or "Philosophy of Islam" vol 2 (in Urdu) by "Justice Agha Sultan Mirza Dehalvi" of India (later Pakistani). What's the truth concerning this matter?

I apologise if I have burdened you due to my less knowledge of Fiqh.

Answers

It should prove a good investigatory exercise for you to find out who did what and why to whom!!! It is an exercise to try to distinguish the Haqq from the Baatil. I would be interested to see whether you would be able to do that. Let me know the outcome of your research. InSha'Allah.

As for your Khums questions, before I answer your question I would like to draw your attention to a book that addresses some points on this topic and the questions raised. The book is The Islamic System of Government and is available online in the book section of our website.

You can pay the Khums as soon you receive your salary, or wait and pay the Khums at the end of the month or at the end of the year. At the end of the month or at the end of the year you pay the Khums on any superfluous, unKhumsed capital, whatever amount you have left. So if your total income throughout the year is $1000 and at the end of the year you have $500 left, which is unKhumsed, then the this amount of $500 is liable to Khums – which is $100. If were left with $500 at the end of the year, but $250 of that leftover is a Khumsed amount –from a previous year say – then the amount liable to Khums is only $250.

A1) Khums must be paid in seven categories:

Work income /business profit,
Minerals,
Treasures,
Halaal and Haraam monies,
Gemstones obtained from the sea through diving,
Spoils of war,
The land that a Thimmi Kafir buys from a Muslim, in this case the former must pay the Khums for it.

Zakat is paid on nine items as given in the book mentioned above:

Wheat
Barley
Date
Raisins/Currents/Sultana -- these four categories are known as the four crops
Camel
Cattle
Sheep -- these three categories are known as the animals
Gold
Silver -- these two categories are known as the currency

A2) they are divided intotwo divisions: the Share of the Sayyid (Poor) and the Share of the Imam (AS).

A3) You need the specific permission of your Marje' to do that and the extent of the amount you can deal with.

A4) Again youneed the specific permission of your Marje' for this.

A5) You need to give it to your Marje' or to the representative of your Marje'.

A6) Yes.

A7) It is obligatory upon the Sayyid to pay Khums if qualified.

A8) No. They must be paid by the end of your financial year. So if your year starts on the 1^st of January, then all your Khums etc. must be paid by 31^st December of that year.

{You need to go according to the Islamic calendar, so if you set your financial to be 1^st of Ramadahn, then you need to settle your accounts by the end of Sha'baan at the latest.}

A9) if the father is dead, paying unpaid Khums and Zakat is the religious responsibility of the eldest son. They must be paid out before the inheritance is worked out. 1) You must pay the full amount. 2) As for the case of not knowing the exact amount, although it is the religious responsibility for the son to pay the minimum amount he thinks it should be paid, but if you want the father to feel free in his grave, you should pay the maximum amount you think the father is liable to.

A10) there are Jizyah and Khiraaj that are not applicable to you. If you want to know what they are look in the above-mentioned book. If you make a Nazr, then it becomes obligatory upon you.

A11) For Khums you need the permission of the Marje'.

A12) In the Shari'ah of Islam there is not Zakat on horses.