He wrote in his own handwriting...

He wrote in his own handwriting: Khums is (deductible from income) after allowing for one’s provisions”. * During the Dialogue on Prayer, you said to me: Do not say your prayer, wearing clothes whose Khums tax was not paid. You reiterated this when we were discussing matters of Hajj. You said: Cleanse your property by setting aside, where applicable, khums and zakat due on it, before you embark on your journey for pilgrimage. Do I have to pay khums tax on all my property?

●Khums is payable on the following: 1. Whatever Muslims take in war booty, movable and immovable property, from the unbelievers they lawfully engage in war. 2. What is owned, of metals, by way of mining, such as gold, silver, copper, iron, sulphur, etc. Also, crude oil and coal, after deducting production and processing cost, provided that the quantity extracted and ready for marketing is not less than the equivalent value of fifteen mithqal sairafi of gold coins or more. 3.

Treasures, provided that their value is not less than the equivalent of fifteen mithqal sairafi of gold and one hundred and five mithqals of silver, excluding excavation costs. 4. What has been extracted from the sea or big rivers by way of diving, such as pearls and corals, provided that the value thereby is not less than the equivalent of one gold Dinar (equivalent to 4.25 gm). 5. Some types of licit money mixed with illicit money. 6.

Annual profits acquired through trade, industry, agriculture, presents, any other means of income, including wages and salaries and….. I interjected, “Does this mean that profits made by bussinessmen should be liable for khums tax?” - Not only businessmen are required to pay khums on their returns, rather everyone who is making a profit of a kind or earning income, including you and me. * How does a businessman go about calculating khums due on his profits?

●He should take stock of his cash and merchandise, a year after setting up in business; he should, though, exclude the following: a. His capital. b. Any costs incurred in the process of conducting the business, i.e. transport, electricity, telephone, rent, storage, taxes and the like. c. All personal outgoings, i.e.

expenditure on food, drink, clothes, house, furniture, transport, medical treatment, and other similar expenses, including paying debt, buying presents, travelling, that are considered within one’s normal lifestyle, but not bordering on the lavish side.

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