khums on prize bond khums is payable on all savings - KhumsSistani prize bonds Understanding Khums on Prize Bonds: A Detailed Exploration

Khums ongifts 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 khumsKhums Notes - Islamic Laws. 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 wealth. 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. The intent behind paying khums is to attain nearness to Allah (Qurbah) and to purify one's wealth. 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.Money - المجیب Instead, individuals purchase these bonds with the anticipation of receiving prizes, alongside the return of their principal investmentKhums. 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.

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.Yes. There are some long-term savings which are for a specific use in the future, such as savings for a child's marriage.Khumsis liable on such savings as ...

* 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. 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 khums.

* In some discussions, it is stated that you have to give 25% as khums, in charity. 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 winnings.Questions About Khums | Ask A Question | Al-Islam.org

* 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 profitKhumsmeans “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..

* Regarding gifts, most present mujtahids agree that khums is not obligatory on gifts and presents. However, some hold a precautionary obligation to pay khums on giftsIf thebondsfunds are invested in lawful business, it will be then permissible to invest in it and to use the income from it. It makes no difference whether it ....

* 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.

* 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 dueKhumsliterally means “one-fifth.” In Islamic terms, it refers to an obligation for Muslims (particularly in Shia jurisprudence) to pay 20% of their yearly .... Khums is typically calculated on the net savings or surplus income at the end of the financial year.佛历2568年12月8日—Khums(Arabic: الخمس), (One fifth) is a jurisprudential term meaning to pay one fifth of the annual surplus income, or of mine and treasure. 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.

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 wealth. 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.