Day Questions

If I invest money into the stock market or mutual funds (a collection of stocks) and keep my money in those investments for many years, do I have to pay khums on any gains even if I do not remove the money from the investments? Or do I just pay khums when I remove the money if I keep that money for over a year?

It is obligatory to pay Khums on the increase in the value of the shares if this increase reflects the increase in profits made by the company, or the increase in the wealth and capital of the company, or similar reasons. If the value of the shares increase due to incidental or arbitrary factors, such as war, increase in demand of the company products, speculation, etc. then this does not obligate Khums. If the owner of the shares sells them with a profit, Khums is payable on the profit.

Is it permissible for me, without the consent of the Marji, to give khums to my Sayyid relatives who are very poor?

The share of Sayyids from the khums is payable to the needy Sayyid believers. His Eminence, the Grand Ayatollah Sayyid Al-Hakeem (may Allah prolong his life) has given his permission to spend the said share on the needy Sayyids. Orphans and needy people who are not Sayyid are not to be given from the share of Sayyids. The share of the Imam (peace be upon him) from the khums is to be given to the Marji who you follow via his network of appointed agents or to be spent with his permission.

How does one pay khums on clothes and other possessions, if he wishes to pay in cash?

If you did not use those things, you must pay the fifth of its market value at the end of the khums year.

What is the Islamic ruling on treasury bills? Treasury bills are given when you lend money to the government and expect it to be returned with interest at the end of a specified period.

It is permissible to make use of the treasury bills, and one must not intend to make a deal with the government, but rather intend to make use of this mechanism. When collecting the money, it should be on behalf of the religious ruler i.e. the Marja.

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