A person is in debt and this debt has been used for daily expenses, such as food and household purchases. They joined a loan association to receive funds to pay off their debt, and this loan lasts more than a year. The question is whether they need to pay Khums on the amount they receive.
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1 Answer
Peace be upon you and God's mercy and blessings.
Grand Ayatollah Sayyid Khamenei and Grand Ayatollah Sayyid Sistani (may God protect them):
Assuming the person is the second in line for the funds, the money received from the association (let's say it is 1,000 Riyals shared among five people) can be divided into three parts:
1. 200 Riyals, which is the amount they contributed to this fund.
2. 200 Riyals, which was paid to the person who received the money before them.
3. 600 Riyals, which is a debt they owe and must repay in installments.
For the first part, if it is from the profits of this year, it is not subject to Khums unless it exceeds their expenses.
For the second part, it must be subject to Khums immediately if the amount paid to the previous person is from the profits of the previous year, such as if they paid the first installment at the end of their Khums year and received their turn in the association at the beginning of the following year. If it is from the profits of the year they received it, the ruling is the same as for the first part.
For the third part, it is treated like other debts. If they spent it on necessary expenses and incurred new expenses before the year ends, they can exclude that amount and pay Khums on the remaining amount if any. If they spent it on non-essential expenses and have nothing left, they can repay it from their profits before the year ends. If they still have the original amount or its equivalent until they repay the loan, it is considered part of the profits for the year of repayment.
Can the debt be excluded from the amount subject to Khums?
Grand Ayatollah Sayyid Khamenei (may God protect him):
Debts that were spent on necessary expenses of the same year can be excluded from the profits of that year.
Grand Ayatollah Sayyid Sistani (may God protect him):
Debts that were spent on necessary expenses of previous years can be excluded from the profits of this year if the debts arose after the profits of the same year were realized.
May you be successful in all good.
Source:
Grand Ayatollah Sayyid Sistani (may God protect him): Official website.
Grand Ayatollah Sayyid Khamenei (may God protect him): Official website + Special inquiry.