Category Archives: Fatwas

Islamic Verdict

Pension Plans and Education Funds

QUESTION:

Dear Mufti,

Can you say if pension plans that are interest free and accident and emergency medical plans together with education plans for children to go uwi is permissible from Guardian life?

————————————————————————————-

ANSWER:

As Salaam Alaikum,

Pension plans that are interest free is permissible.

The accident and emergency medical plan is really an ‘Accident Insurance’ offered by Guardian life. This operates like other form of insurances where Gharar (uncertainty) is found. Hence, it will not be permissible.

Education plans for children is another product of Guardian life which encourages one to put aside/save or contribute towards a child’s future education. This on its own is good when it is connected to simply saving monies for the future education of one’s child. However, in many cases an ‘Education plan’ is combined with an insurance. The purpose of being combined with an insurance is that if something happens to the parent or if he/she becomes disable or passes away, then the child will still receive the predetermined payout amount when the plan matures. The Insurance ensures that the child’s education will continue if the savings portion is not sufficient to pay out the child’s education. Therefore if the ‘Education plan’ is combined with savings and insurance, then it will not be permissible due to the unlawful elements present in Insurance. If a person has taken out such a plan, then it will be permissible for him to benefit from the savings portion which was contributed to the fund.

If the ‘Education plan’ deals only with the savings of a person which he contributes on a monthly basis and builds up a fixed fund over several years, then this is permissible.

And Allah Knows best

Mufti Waseem Khan

30/11/2017

Is Forex Trading Permissible?

QUESTION:

Assalamu Alaikum,

Mufti,

My question today is based on if Forex Trading is Permissible in Islam?

I have been doing some research for myself but i need advice from you. From certain articles online it is said that the prophet pbuh said it was permissible to trade currencies once it is done immediately and at the current market price.

Now this brings us to trading on the forex market presently. when you trade you either buy or sell a currency pair at a price now that price will fluctuate influencing you to either buy or sell now that moment of buying or selling will come from your own idea or from charts being provided online you then place your money on the trade but lets say you enter at a certain price for buying but the market turns around you will be losing. it is something that is never guaranteed.
(like playing lotto etc you buy a ticket and you either win or lose)
when you enter a trade you either win or lose.

Sorry for the long email but it something i need some clarification on.
I am a revert so I need scholars advice to help me in making these decisions.

JazakAllah Kair

————————————————————————————-

ANSWER:

Wa Alaikum As Salaam,

Trading in currencies (foreign exchange) is permissible in Islam with the following:-

  1. The Transaction between the two parties must be done immediately without delay on any side.
  2. The two currencies that are traded in, must be exchanged on the spot without delay.
  3. Currencies traded in, must be actually owned and possessed by a person. When the currency exchange takes place, the actual delivery of currency (sold) by the seller must take place, and the actual taking possession of the currency by the purchaser must take place. Both parties must take possession of the currencies traded in, in the same sitting and there must be no delay on any one side.
  4. No element of interest must be present in the transaction.

 

The above conditions must be present for the validity of trading in currencies.

 

With respect to Forex trading via the internet, it is seen that some of the conditions laid in Islam for currency trading is not present. For example, when real/actual possession, ownership and delivery must take place, it is seen that in Forex Trading (via the internet), forex traders do not expect to take actual delivery of the currency they are buying, and they do not actually own the currency they are selling. They are simply speculating that the value of one will go up and the value of another will go down.

 

Similarly, while interest is totally prohibited in Islam, one finds that in Forex trading markets, interest is charged for not using the deal at the same day. In some cases, the agent sells something which he does not possess, and is forbidden in Islam.

 

Hence, in my opinion, Forex trading markets (via the internet) will not be permissible.

 

And Allah knows best

Mufti Waseem Khan

1/12/17

DEATH IN SERVICE BENEFITS

QUESTION:

Hazrat, Death in Service is a benefit offered by most western employers where they pay 3/4 times your salary to your spouse/dependants. I believe you become eligible after certain few years of service.

ANSWER:

Wa Alaikum As Salaam,

The ‘Death in service’ benefit will be halal for your family since it is given from the monies which you and your employers contributed to while you were employed at the company.

And Allah Knows best

Mufti Waseem Khan

29/10/2017

DEFINITION OF KHALWAH BIL AJNABIYYAH.

QUESTION:

As salamu alaykum what is the definition of Khalwah Bil Ajnabiyyah?

Jazak Allah Khayr

 

ANSWER:

Wa Alaikum As Salaam,

‘Khalwah bil Ajnabiyyah’ means to be in seclusion or to be alone with a woman /girl who is not blood- related to you.

This is totally haram in Islam.

And Allah Knows best

Mufti Waseem Knah

28/11/2017

 

TAKING UP A CAREER IN ISLAM

QUESTION:

السلام عليكم
I would like to know if being a police officer a good career to have in a islamic perspective…

ANSWER:

Wa Alaikum As Salaam,

Generally, a Muslim is required to adopt a means of livelihood and a career, where it is easy for him to practice his religion. It is not permissible to intentionally get into something where one knows very well that he will have to compromise in his religious teachings and at times, may even have to leave out certain important and essential practices of his religion.

Therefore, if in being a police officer, a person believes that he can continue to practice his religious teachings without compromise, then he can go ahead to be a police officer. However, if in doing so, a person knows that he will have to compromise, and leave out some of his religious practices, then he should go for this profession.

And Allah Knows best

Mufti Waseem Khan

28/11/2017

PROCEDURE OF A DIVORCE

QUESTION:

Message Body:
What are the procedures of conducting a divorce through islamic rights…

ANSWER:

As Salaam Alaikum,

In Islamic teachings, a divorce comes about through the utterance of ‘divorce’ by the husband to the wife.

If the husband utters a statement to his wife such as, ‘I divorce you’ or ‘I have divorced you’ or ‘you are divorced from me’ or ‘you are a divorced woman’ then, immediately his wife becomes divorce, even though there was no written statement or signature.

Although the divorce given in the above manner is valid and it takes effect, a husband is encouraged to follow the manner prescribed by the Shariah while giving a divorce to his wife. The correct procedure is:-

  1. Divorce should be given when the wife is in a state of purity, when she is clean after her menses, and the husband did not have sexual relation with her.
  2. When giving divorce, the husband should give only one divorce. Therefore, he should say, ‘I divorce you’ or any similar statement, without adding numbers like two or three to the divorce.
  3. It is best to give the divorce in the presence of two witnesses.
  4. After giving the divorce, the woman will pass her iddah (waiting period) in the marital home, and the husband must not ask her to leave the home. During this period, the husband is required to provide maintenance for her.

 

And Allah Knows best

Mufti Waseem Khan

28/11/2017

ZAKAAT CALCULATION


QUESTION:

As Salam Alaikum,
I have  questions regarding Zakat calculations:
Question 1: From the annual calculations of zakat , do we need to deduct the following amount as deductible liabilities from my Assets in order to find the net value on which zakat ( 2.5% ) will be applicable ? :

The Liabilities as follows:

– Car Lease Payment ( Next 12 months )

– Apartment Rent Charges ( 12 months )

– Children School Fee ( 12 months )

– Tax Payable to Govt. ( Annual )

– Utilities Bills ( 12 Months )

– Other Liabilities ( Purchasing food commodities for oneself and his family – next 12 months )

Question 2 : I have booked the property for Investment in 2002 and paid its value through installments to next 10 years. In 2012 , I got possession of this property.
So zakat would be applicable on market value right after 2002 when i booked that property or starting from  2012 ( when i got the actual possessions of that property )

Please assist me. Thanks

               ANSWER:

As Salaam Alaikum,

  1. Zakat is payable on your savings and not on monies which you have for your daily and monthly expenses.

With respect to depts or loans which must be paid, only such depts and loans will be deducted which are payable at the time you are paying Zakaat. You will not look ahead over the next twelve months and deduct the expenses which are yet to come about (over the period) if you are paying Zakaat at the present time.

People in general, normally pay their daily/monthly expenses from their monthly salaries/income, and would rarely dip into their savings which they have set aside.

Therefore, you will find that a person who receives a monthly salary will pay his car lease payment, apartment rental, school fees, utility bills, groceries and other daily requirements from his salary. These are monthly expenses which a person has to take out on an ongoing basis and will normally be taken out from one’s monthly salary. As for Government taxe, whenever this becomes due, a person pays it from his income which he receives on a regular basis.

As such, if you are going to pay Zakaat at this time, then you will pay on your savings that you have, and not on the monies you may have at home or in the bank from which you are using for your day-to-day and ongoing expenses like that which have been mentioned above.

Therefore, when paying 2 ½ % on your savings (as Zakaat), you will not deduct the expenses for the next 12 months for car lease payment, apartment rent  charges, children school fees, taxes to Government, utility bills, food, groceries etc.

If however, any, or all of the above expenses are taken out from your savings or monies from which you are paying Zakaat, then only those expenses that are due at that time ( of that month) can be deducted, not of the other upcoming months.

  1. Zakaat will be applicable when you become the owner of the property and got possession of it in 2012. If the property is for sale, then from that time, you will pay Zakaat on its market value. If it is not for sale, then no Zakaat will be payable on it. If the property is rented to others, then you will pay Zakaat on the rent received and not on the property.

 

And Allah Knows best

Mufti Waseem Khan

20/1/2017

WHO IS A SAHIBUT TARTEEB

QUESTION:

 

As Salaam Alaikum Mufti Sab,

Does this means a Sahibut Tarteeb is one who has not miss more that 5 Salaah from the time Salaah becomes accountable on him or does it mean not missing 5 Salaah with in a day because most people would not be a Sahibut Tarteeb since thay would have miss many salaah during school, collage, work, etc, so does this mean that dont have to pray the miss salaah in Sequence?

Please clerify

 

ANSWER:

Wa Alaikum As Salaam,

A  Sahibut Tarteeb is one who has not missed more than 5 Salaah consecutively from the time Salaah became compulsory upon him. Therefore, if everyday a person perform some salaah and missed some, then he remains a Sahibut Tarteeb since he did not allow 6 Salaah to be missed consecutively. In this case, he was supposed to have performed the missed Salaah before performing the Salaah which he read on its time.

As for those who have missed more than 5 Salaah consecutively (i.e they missed six), then they are not people of Tarteeb (Sahibut Tarteeb), but when making up their Qadha, they should try to do it in sequence, although it is not essential upon them, due to the fact that the Tarteeb has been broken.

Those who had many Qadha Salaah to make up and their tarteeb was broken due to missing 6 Salaah consecutively, if they perform all the missed salaah, then they will return as being Sahibut Tarteeb. (Raddul Muktar Vol.2 pg.70 H.M (Saeed com. Karachi Pakistan).

 

And Allah Knows best

Mufti Waseem Khan

31/10/2017

ISLAMIC RULING ON SHARED OWNERSHIP BETWEEN A HUSBAND AND A WIFE

QUESTION

Assalaamu Alaikum,
I wanted to know what was the islamic ruling/rights when it comes to husband and wife sharing with one another (legally transferring of names to have shared ownership) their inheritance from their parents?  Both from a man to his wife or a wife to her husband……

ANSWER:

Wa Alaikum As Salaam,

It is permissible for a husband and wife to share their properties with each other, They can also legally transfer names to have shared ownership. This however, can only be done in things that are legally owned and possessed by a person. Therefore, if the husband is the owner of a house and the land on which it stands, and he wants to put his wife’s name on the deed, then it can be done. However, this alone does not bring about part ownership for the wife. For the wife to become a part owner or a full owner, the husband must actually give her the amount he wants her to be the owner of. He must say this in words or write in on a paper.

The same is the case when the wife is the owner of a property. She can put her husband’s name on the deed or on any legal document. However, for him to become a part owner or full owner of her property, she must actually give it to him by uttering a statement or writing it on a paper. The mere placing of a name on any legal document does not bring about ownership.

It is also important to note that in situations like this where there is shared ownership of a property or wealth, when one party dies, then the amount owned by that person will go to all the legal heirs in inheritance. It will not be automatically transferred to the person whose name may be on the deed. This person may also get part of the inheritance, if he/she is a legal heir. However, the entire amount will not go to him/her.

And Allah Knows best

Mufti Waseem Khan

31/10/2017