khums on prize bond Khums becomes wajib at the beginning of the new financial year - Khums oninvestment Yes Understanding Khums on Prize Bonds: A Detailed Exploration

Khums oninvestment The question of khums on prize bond investments is a complex one within Islamic jurisprudence, touching upon the nature of prize bonds, savings, and the Islamic financial obligation of khums.Money - المجیب This article aims to provide a comprehensive overview, drawing from various scholarly opinions and jurisprudential interpretations, to clarify the nuances surrounding this topic.

What is Khums?

At its core, khums (Arabic for "one-fifth") is a religious tax in Islam, generally understood as an obligation to pay 20% of certain forms of acquired wealthIskhumsalso wajib on gift,prize, legacy, charity, zakat andkhums? According to most present mujtahids, it is precautionarily wajib to paykhumsfrom .... According to most present-day mujtahids, khums is payable on the annual surplus of income. This income can originate from various sources, including business profits, earnings, investment returns, and even acquired wealth like treasure or spoils of war.Is Prize Bond financially halal? - Ahmad Tariq - Medium The intent behind paying khums is to attain nearness to Allah (Qurbah) and to purify one's wealth.If you have already paid it's Khums, then no Khums again on the remaining amount because it has been already purified by paying its Khums. 'Wassalam. It's crucial to understand that khums becomes wajib at the beginning of the new financial year on the profit or surplus of the past year's income.

Prize Bonds and Their Nature

Prize bonds themselves do not involve the direct buying or selling of a commodity.If you have already paid it's Khums, then no Khums again on the remaining amount because it has been already purified by paying its Khums. 'Wassalam. Instead, individuals purchase these bonds with the anticipation of receiving prizes, alongside the return of their principal investment. This unique characteristic differentiates them from conventional investments and forms a significant part of the discussion regarding khums obligation. Some interpretations suggest that if bonds funds are invested in lawful business, it will be permissible to invest in it and use the income from it.Khumsmeans “one-fifth or 20%”. In Islamic legal terminology, it means one-fifth of the annual net saving that a person acquires during his financial year.

The Debate on Khums on Prize Bond Winnings

The primary point of contention regarding khums on prize bond winnings revolves around whether these winnings constitute taxable wealth under the principles of khums.

* Arguments Against Khums on Prize Bonds:

* Some scholarly opinions assert that khums is not obligatory for prizes and gift. This perspective often categorizes prize money as a gift or grant, from which, according to certain jurists, khums is not obligatory.

* Another viewpoint suggests that if one has already paid khums on the initial amount invested in the prize bond, then no further khums is due on any winnings, as the initial amount has already been purified.

* Arguments For Khums on Prize Bonds:

* Conversely, other interpretations raise the question: is it permissible to give 50 percent of prize bond money as khums? While this specific percentage (50%) might be a misinterpretation, it highlights the underlying concern for fulfilling religious obligations.What IsKhums?Khumsis an Islamic tax, paid at the rate of one-fifth or 20 percent of annual saving or surplus of income. The saving or ... Some scholars suggest that if the objective of the prize bond is seen as a form of earning or gaining wealth, then its winnings could be subject to khumsA. When To Pay Khums.Khums becomes wajib at the beginning of the new financial yearon the profit or surplus of the past year's income..

* In some discussions, it is stated that you have to give 25% as khums, in charityPractical Laws of Islam :: Leader.ir. This might refer to a specific interpretation or a broader category of charitable giving related to uncertain or potentially *haram* (forbidden) earnings, which could encompass winningsDialogue on Khums - Jurisprudence Made Easy.

* A practical implication is that khums is payable on all savings, and prize bond winnings can be considered a form of saving if not immediately spent.

Specific Interpretations and Guidance

* Grand Ayatollah Sistani and other prominent scholars hold varied views on specific financial matters. For instance, on the topic of khums on inheritance, generally, inheritance is not subject to khums. However, if one uses inherited money for business and generates profit, then khums would apply to the profit.Dialogue on Khums - Jurisprudence Made Easy

* Regarding gifts, most present mujtahids agree that khums is not obligatory on gifts and presents.佛历2567年4月29日—Khums- an Islamic Tax. Regularprice.00. Format. Physical Book, eBook. Add to cart. Also available on Rakuten Kobo and ... However, some hold a precautionary obligation to pay khums on gifts.

* The concept of khums on investment is generally accepted, as profits derived from investments are considered surplus income. The application of khums to specific types of investments, like investment in prize bonds, thus depends on how the winnings are characterized.佛历2567年3月30日—TheKhumsis a financial duty that is carried out with the intention of attaining nearness to Allah (Qurbah). In comparison to zakat, it is obligatory on all ...

* The general rule for khums is that it applies to the surplus of income over expenses for the year. Therefore, khums becomes wajib at the beginning of the new financial year on any financial gains that have not been utilized for living expenses.

Calculating Khums

For those who are obligated to pay khums, a khums calculator can be a useful tool to accurately determine the amount due. Khums is typically calculated on the net savings or surplus income at the end of the financial year佛历2567年4月29日—Khums- an Islamic Tax. Regularprice.00. Format. Physical Book, eBook. Add to cart. Also available on Rakuten Kobo and .... If a person has purchased property not for business and paid khums on it, and its price rises, they would need to pay khums on the increased price if it exceeds living expenses for one year.Khums (the Islamic Tax)

Conclusion

The question of khums on prize bond investments is not straightforward and depends heavily on individual scholarly interpretations and the specific nature of the winnings. While some view prize money as exempt, others may consider it subject to khums if it's seen as a form of earning or an increase in wealthto an obligatory (wajib) religious tax which one must pay on several things, the most common of which is surplus income from earnings and gains. The amount of .... It is always advisable for individuals to consult with their local religious authority or a qualified Islamic scholar for personalized guidance on their specific financial situation and obligations, particularly concerning matters like khums on gold sistani related queries or khumsin Quran interpretations. Understanding the principles of khums and its applicability to various financial instruments like prize bonds is essential for fulfilling one's religious duties.