1.Profit from Earning (Business)

1861. One cannot own the property that he is not sure that its Khums is paid but if he only doubts, he may own it.

1862. If a person who has never paid Khums since be became liable, purchases a property, and its price goes up, and if he had not purchased it with the intention to see its price inflated and sell, for example, if he had purchased a land for farming and paid its price out of the money on which he had not paid Khums, he should pay Khums on the purchase price. And if, he has paid to the seller the money on which Khums has not been paid by him, and told him: “I am purchasing this property with this money” he should pay Khums on the current value of that property.

1863. If a person who has never paid Khums since he became liable for it, purchases with the profit of his trade, something which is not needed by him, and a year passes since he made that profit, he should pay Khums on that thing. And if he purchases household equipment and other necessities, in accordance with his status, it is not necessary for him to pay Khums on them, if he knows that he purchased them during the year with the same year’s profit. And if he does not know, he should, as an obligatory precaution, make compromise with a fully competent Mujtahid

1823. One who is dependent on others for his expenses, must pay the Khums of whether he/she gets, but if he/she spends part of that for pilgrimage or the like, he/she should pay only Khums of the remaining portion.

1824. If a person gives away a property as Waqf to some individuals, like his sons, and if they do farming and planting trees on that property, and acquire from it an earning which exceeds their annual expenses, they should pay it Khums.

1825. If the wealth given to a poor person, as Khums or Zakat is more than his annual expenses, it is not necessary to pay Khums, but if he/she earns profit from the given wealth, like getting fruits from a tree given to him/her as Khums, and it is more than his/her annual expenses, Khums must be paid, and also, if a poorman gets a property by way of recommendatory charity (Sadaqa), as an obligatory precaution, its Khums must be paid.

1826. If one buys something with the money which its Khums is not paid, and he says to the seller that “I an buying this item with this money”, then if a fully competent Mujtahid approves one fifth of transaction, the act is only correct up to that limit, and he/she must give one fifth of whatever is purchased in this way to the fully competent Mujtahid, and if he (Mujtahid) does not approve, the transaction is void up to that point. If the money which used for transaction is still available, the fully competent Mujtahid gets one fifth of it and if it is not available, Khums must be paid by either purchaser or seller

1827. If one buy something and later pays its price from a money which its Khums is not paid, the transaction is in order, but because of paying that kind of money to seller, he owes him one fifth of value and if the paid money is still there, the fully competent Mujtahid gets one-fifth and if it is not there, he may get the consideration from buyer or seller.

1828. If one buys something with a money which its Khums is not paid, if a fully competent Mujtahid does not approve its one fifth, the transaction is void up to that limit and that Mujtahid may get it and approve the transaction and the buyer must pay one fifth of the money to the fully competent Mujtahid and if he gives it to seller, he may get it back.

1829. If a person gives a gift to a person, from which Khums has not been paid, one fifth of it is the liability of one who gets the gift and this part does not get transferred to him.

1830. If a person acquires wealth from an unbeliever, or a person who does not believe in paying Khums, it will not be obligatory for him, that is, the person who receives, to pay Khums.

1831. It is obligatory on the merchants, the earners, the artisans, and others like them that when a year passes since they started earning, they should pay Khums from whatever is in excess of their expenses for one year. And if a person, who is not earning, makes an unexpected gain, he should pay Khums after a year has passed since he gained, on the savings which exceeds his expenditure for that year

1832. A person can pay Khums as and when he earns a profit during a year, and it is also permissible to delay payment of Khums till the end of the year. And there is no objection if one adopts the solar year for the payment of Khums.

1833. If a merchant or an earner fixes a year for payment of Khums, and makes a profit, but dies during the same year, his expenses till his death should be deducted from the profit, and Khums should be paid on the balance.

1834. If the price of a commodity one purchases for the purpose of business shoots up, and he does not sell it, and its price falls during the year, it is not obligatory on him to calculate Khums on the increased prices.

1835. If the price of a commodity, which a person purchases for the purpose of business shoots up, and he does not sell it till after the end of the year, expecting that the price will rise, and then the price falls, it is obligatory for him to calculate Khums based on the increase in the price. But if he has kept it a period, which is customary for traders to do that for piece increase, then Khums of increased price should be paid.

1836. If a person possesses some goods other than merchandise, from which Khums has been paid by him, if its price shoots up, and he sells it, he will pay Khums on the excess gained. Similarly if, the tree which he has purchased bears fruit, or a sheep which becomes fat, and if his object in maintaining them was to earn profit, he should pay Khums from the price increase.

1837. If a person establishes a garden, with the intention of selling it after its price does up, he should pay Khums on the fruit, the growth of the trees and the increase in the price of the garden. But, if his intention is to sell the fruit of the trees and benefit from its value, he should pay Khums on the fruit only, and as a precaution, he must pay Khums for growth of trees.

1838. If a person plants willow, plane tree and other trees like them, he should pay Khums on their growth every year. And similarly, if he makes profit from the branches of the trees which are cut every year, and the price of these branches alone, or the same added with other profits made by him, makes his income exceed his expenditure for the year, he should pay his Khums at the end of year.

1839. If a person has a few sources of income, for example, he receives rent for his property and is also engaged in trade and forming, if they are all considered as one business, he should pay Khums at the end of the year from what exceeds his expenses. And if he makes a profit in one source and sustains loss in another, he must pay Khums of the profitable one and if he ha two different trades, he may offset one by the other, as an obligatory precaution.

1840. A person can deduct from his profit, the expenditure which he incur in making profit, like, on brokerage and transportation, and it is not necessary to pay Khums on that amount.

1841. No Khums is payable on what one spends from his profit during the year on food, dress, furniture, purchase of house, marriage of sin, dowry of daughter, Ziyarat etc., provided that it is not beyond his status, and he has not been extravagant.

1843. If a person cannot prepare all the dowry for his daughter at the time of her marriage, and has to do so over a few years, and if it is deemed unbecoming for him not to give away any dowry, Khums will not be liable on what he purchases during the year, provided it is within his means. The same applies to saving money for dowry.

1844. Whatever a person spends for his journey to Hajj and other Ziyarats (pilgrimages) is reckoned to be part of his expenditure of the year in which he spends it. He started trip if the property used is still there and useful, like transportation means, even if the trip extends to another year. But if it is perishable like foodstuff, he must pay Khums of the next year

1845. If a person, who earns profit from his work and trade, has some other property on which Khums is not liable, he can calculate his expenditure for the year from the profit earned from his work or business.

1846. If a person purchases provision for his use during the year, with the profit made by him, and at the end of the year a part of it remains unused, he should pay Khums on it.

1847. If a person purchases household accessories with the profit earned by him before paying Khums, it is not necessary for him to pay Khums on them if their need ends after the year ends. Similarly, when a woman no more needs her ornaments for adornment, Khums will have to be paid on it.

1848. If a person does not make any profit during a year, he cannot deduct his expenditure of that year from the profit, which he makes in the next year.

1849. If a person does not make any profit in the beginning of the year, and spends his capital, and then makes some profit before the year ends, he is allowed to deduct the amount spent from his capital, from the profit

1850. If a part of capital in one line of business is decreased or lost because of loss in transaction or damages, without concerned person’s fault, but he makes profit some other way in the same line which is more than annual expenses, he may take the part which decreased of capital from the profits.

1851. If something else other than capital is lost from his wealth, he cannot procure it from the profit made by him. But if he needs that thing during that very year, he can procure it from the profit.

1852. If one borrows money in the beginning of year to cover his expenses, and before the end of year, he makes profit, he cannot deduct the borrowed money from the profit.

1853. If a person does not make any profit throughout a year, and borrows money to meet his expenses, he cannot deduct the borrowed amount from the profit made by him during the succeeding years. In the case mentioned above, he can deducts his debt from the profit made during the year, and that part of the profit will not be liable for Khums.

1854. If a person takes a loan to increase his wealth, or to purchase a property, which he does not need, he cannot repay that loan from the profit earned during that year. However, if the loan taken out by him, or the thing purchased with it, is lost, he can pay the loan out of the profit made by him during that year

1855. A person can pay the Khums of the thing from itself, or ha can also pay money equivalent to the value of the Khums for which he is liable. But if he wants to pay from another commodity which has not yet become liable for Khums, he cannot do so without the permission of rully competent Mujtahid.

1856. If a person becomes liable for Khums he cannot have any discretion over that property. Even if he intends to pay Khums.

1857. A person who owes Khums cannot take responsibility for it, i.e. treat himself to be the debtor of those entitled to receive it, and use the entire property, and if he uses that property and it is lost, he should pay Khums on it.

1858. If a person who owes Khums makes a compromise with a fully competent Mujtahid, and takes responsibility for it, he can appropriate the entire property.

1859. If one partner pays Khums on the profit made by him, and the other partner does not pay it, and he offers in the next year, as share of his capital, the property on which Khums has not been paid by him. They both don’t have right over property.

1860. If a minor child owns some capital, and profit accrues on it, Khums becomes liable and it is obligatory upon his guardian to pay the Khums

1861. One cannot own the property that he is not sure that its Khums is paid but if he only doubts, he may own it.

1862. If a person who has never paid Khums since be became liable, purchases a property, and its price goes up, and if he had not purchased it with the intention to see its price inflated and sell, for example, if he had purchased a land for farming and paid its price out of the money on which he had not paid Khums, he should pay Khums on the purchase price. And if, he has paid to the seller the money on which Khums has not been paid by him, and told him: “I am purchasing this property with this money” he should pay Khums on the current value of that property.

1863. If a person who has never paid Khums since he became liable for it, purchases with the profit of his trade, something which is not needed by him, and a year passes since he made that profit, he should pay Khums on that thing. And if he purchases household equipment and other necessities, in accordance with his status, it is not necessary for him to pay Khums on them, if he knows that he purchased them during the year with the same year’s profit. And if he does not know, he should, as an obligatory precaution, make compromise with a fully competent Mujtahid.