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Khums

Q:

I received my divorce settlement money to invest in my primary house but cant do so for atleast 1.5-2years, as my daughter and I are away from our hometown and will return after two years once she finishes her high school. So we are renting at the moment. So, that money is for my primary house and not considered savings but will sit in the bank for the next 18-24 months. Do I still need to pay khums on this money. And what about the interest money that i will get from the bank. And lastly, if I were to invest this amount for two years, do I now have to pay khums on the income earned.

A:

Alaykum Salaam

If the settlement you received is part of a deferred mahr then there is no khums on the settlement itself.

Otherwise you will have to pay khums on the amount saved at your annual khums date. All incomes should be added to your total for khums calculation.

Kind regards

Abbas Jaffer