Khums: Khums Liability for the Last Recipient in a Rotating Savings Fund

Practical Laws of Islam as per the teachings of Imam Khamenei

Khums: Khums Liability for the Last Recipient in a Rotating Savings Fund

English:

Question #940:

A group of twelve pious people agreed to deposit a certain sum of money (20 dinars, for instance) in a joint fund at the beginning of every month. Each month a member takes the amount and uses it for his private purposes. This process goes on for twelve months when it is the turn of the last person. It means that he will receive only what he has contributed in that period, i.e. 240 dinars. Is he liable to pay khums on that amount or is it considered part of his annual expenditure? And in case this person has a fixed date for the end of his khums year and part of the money he received is still in his possession at the end of the year, may he fix a separate khums year for this portion to avoid paying khums?

Answer #940:

The money a member receives from the fund is divided into three portions: Frist the amount he paid from the income of the previous year, second the amount he paid from the income of the current year and third the amount he will pay in the next year to settle what he has received. The first portion is liable to khums once he receives. As for the second portion, it is not subject to khums if he spends it on life expenditures before the end of current khums year, while if it remains untouched till the end of this year, he should pay khums on it and cannot consider a separate khums year for it. As for the third portion, it is considered as a loan which is not subject to khums now.

-Imam Khamenei, Practical Laws of Islam, Importance and Conditions of Khums