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Khums In Various Scenarios

Q:

Salaam,

My question has a brief narrative, so please bear with me.

My year end for khums is 31 December.

On 31 December 2014, I had savings of $5,000 on which I paid khums of $1,000. My khums free money is now $4,000.

Scenario 1 In the year 2015, I spent the $4,000 on various allowed expenses. On 31 December 2015, I now have new money that's totals $3,000. Question: Should I pay khums on the $3,000 even though my assets are less and the only issue is the money is "new"

Scenario 2 On 31 December 2015, my net savings are $3,000 Question Should I pay khums on the 3,000 or is this considered to be khums free and part of the $4,000 from 2014?

Scenario 3 In the year 2015, I made an investment of $2,000 and bought a taxi on 30 June 2015. As at 31 December 2015, I now have cash savings of $4,000 and the taxi of $2,000. Question: Should I pay khums on the difference between total savings of $,4000+$2,000=$6,000 and the cash brought forward of $4,000 which gives me a net gain of $,2000 which results in khums of $400?

Scenario 4 Same as scenario 3, BUT, the cash was fully utilised before I bought the tax on 30 June 2015, so the savings at year end of $4,000 and the taxi I bought for $2,000 was new money. Question Should I pay khums on the entire $6,000 or just the difference as written under scenario 3? Scenario 5 I get my salary on 25 December 2015 amounting to $1,000. I will save $200 from this and $800 will be needed for me to meet my expenses in January.

Question: a. Should I pay khums on the entire $1,000 salary or just the expected savings of $200?

b. If I end up saving $300, instead of $200, should I now pay khums on the difference of $300 and $200? This is assuming I don't have to pay on the entire $1,000.

On the issue of new money, I am referring to income earned. The issue that is confusing me is if the new money is supposed to be paid khums on, then the only way to keep track is to physically separate brought forward money that is clean and new money and I am unsure if this is entirely practical.

Ilt dua, With many thanks, MazharAbbas Fazal

A:

Scenario 1
This 3000 is not liable to Khums. You have a choice of not paying the Khums. 

Scenario 2

This is supposed to be Khums free because you didn't make any profit beyond your Khums free amount i e. 4,000

Scenario 3.

Assuming you have 8,000 cash. Only 4,000 is subject to Khums which is new savings. 

Scenario 4
Nothing to be paid.  

Scenario 5
a. Entire salary.  
b. Please refer to above 

There is no need to separate the accounts of new and Khums free money. Yes, when the money drops down from the Khums free money, you will have to consider that amount as a criterion to be Khums free money.

1st year: Your Khums free money is 4,000

2nd year: 3000 is TOTAL savings (no need to pay Khums)

3rd year: 4000 is TOTAL savings (you will have to pay Khums of 1000)

 

Kumail Rajani