Question 559: Assalamulaikum. I have a question regarding Khums on savings exceeds ones expenditure, please. A person has taken a bank loan, and spent the money. The loan is being paid back by monthly installments. The person is able to pay the monthly installments and has enough extra from the monthly salary to put into a savings account. Is khums payable on the savings, given that the loan repayments is still ongoing. Thank you

Answer 559: One of the thing which the khums is obligatory on is profit or gain from earning. This means, if you earn by means of trade, industry, agricultural work, teaching, research or any other ways of earning, and if it exceeds the annual expenses for maintaining yourself and your family, you should pay Khums (i.e. 1/5) from the surplus, in accordance with the rules mentioned in Tawzih al-Masael of maraja’.

Therefore, you are supposed to pay Khums after a year has passed since you gained, on the savings which exceeds your expenditure as well as paying the monthly installments of the loan for that year.[1]

Note: In case the saving is used to purchase the essential things and meet the expenses, Khums would not be payable on it, if it is spent (two or three months) shortly after the khums year to meet those needs.[2]

[1] . The official website of the office of Syyid Sistani, rules concerning Khums.

[2] . Tawzih al-Masael of maraja’ (annotated by Imam Khomeini), Vol. 2, Pg. 79, Q 909.