“It is highly recommended that these (khums) funds & spent with the clear intention that it is on behalf of the Imam (AS). It is incumbent to maintain priority of importance – the more important ones to be addressed first. In these times, the most important &a in which Sehme Imam (AS) can be spent is to establish the correct practice of religion, propagate the divine message, spread the teachings of our religion & to provide & cover for the costs of the learned people who spend their time in learning. They have dedicated their lives to teaching the ignorant, guiding the misled, advising the Believers, counseling the aggrieved & many more such activities that contribute to the promotion of their faith & perfection of their own selves allowing them to gain proximity to the Almighty.”

Minhajus Swaliheen
Page 411 Rule No. 1265

Notes of Lectures on
KHUMS FIQH
by Maulana Sadiq Hasan in Melbourne

`^` One of the most important conditions for a thing to become mubah (lawful) is that the khums for that thing (if wajib) must have been paid Ignoring the condition of mubah for salat is the same as taking salat lightly or insignificant (istekhfaf) & amounts to a great sin.

`^` If khums was wajib on the clothes you & wearing & has not been paid, & if the salat has been offered in such clothes, then the salat is batil (invalid) even if you did not know this rule. In such a case, you must repeat that salat with mubah clothes on. The same rule applies for the place or house where the salat is offered, & the water used for wudu or ghusl, & soil used for tayammum.

`^` If khums was wajib on other items (such as food, car, gifts etc), which & not used by the person during his/her salat, & the khums has not been paid on these items, then the salat is not batil, but the salat will not be accepted until the wajib khums on these items has been paid.

`^` Hence, it is first necessary to underst& the laws of khums & halal earnings before underst&ing the detailed masail of salat.

`^` Khums means one fifth. Khums is divided into two equal parts: Sehme Imam & Sehme Sadat.

`^` Sehme Imam is to be given to your marja (or his legal representative). Some Mujtahids (like Ayatullah Seestani & Khui) allow Sehme Sadat to be given directly to poor & deserving sadat.

`^` Other Mujtahids (like Ayatullah Khumaini & Khamenei) say that both Sehme Imam as well as Sehme Sadat must be given to your marja.

`^` If your marja allows you to give Sehme Sadat directly to poor sadat, it is better to give it to your marja, & then you & not responsible about the conditions to be met by the receiving sadat.

`^` While it is important to calculate your khums accurately, it is equally important that you must send your khums to the right person as specified by sharia. If your khums does not reach the right person, it is as if you have not paid the khums.

CONDITIONS FOR PERSONS RECEIVING SEHME SADAT

WHAT IF YOU HAVE NOT PAID KHUMS BEFORE

ITEMS ON WHICH KHUMS BECOMES WAJIB

RULES FOR GIVING SEHME IMAM

ITEMS EXEMPTED FROM KHUMS

WHEN TO PAY KHUMS

KHUMS & INSURANCE / LOAN / PROVIDENT FUND / FIXED DEPOSIT ETC

Lecture # 10 (Friday 14 September 2001)
CONDITIONS FOR PERSONS RECEIVING SEHME SADAT

In case you & giving the sehme sadat portion directly to a sadat, then you & responsible to make sure that the person receiving sehme sadat must fulfill the following five general conditions:

1. Must be a saiyed. This can be determined in one of the following three ways:

(a) The person is famous as saiyed in the &a, where he normally lives.
(b) A just witness testifies that the person is a saiyed
(c) You & sure or 90% satisfied by other means that the person is a saiyed

2. Must be a shia ithna asheri (i.e. believes in the Imamat of 12 Imams of Ahlulbayt)
3. Must be poor (i.e. one who does not have expenses for maintenance of himself & his dependents for one year)
4. Must not be a relative, whose maintenance is wajib on you (e.g. husband can not give his sehme sadat to his wife)
5. Must be given sehme sadat for not more than one year’s of his/her expenses

The person receiving sehme sadat must also fulfill five other conditions regarding his/her character (to be discussed in the next Fiqh Lecture Notes).

Lecture # 11 (Friday 21 September 2001)
MORE ON CONDITIONS FOR PERSONS RECEIVING SEHME SADAT

The five general conditions (as discussed in Fiqh Lecture Notes #10) & that the person receiving sehme sadat

(1) Must be a saiyed,
(2) Must be a shia ithna asheri,
(3) Must be poor (faqeer),
(4) Must not be a relative, whose maintenance is wajib on you,
(5) Must be given sehme sadat for not more than one year’s of his/her expenses.

If a sadat traveller (musafir) becomes poor (faqeer) (even though he was well off in his home town), then sehme sadat can be given to him as traveling expenses up to the extent that he can return to his home town (provided he fulfils other conditions for receiving Sehme Sadat).

You & allowed to give your Sehme Sadat to your relative, whose maintenance is wajib on you, only for those expenses, which do not fall under wajib maintenance expenses on you. This is only if your relative also fulfils all conditions necessary for receiving the Sehme Sadat.

CONDITIONS ON CHARACTER OF PERSONS RECEIVING SEHME SADAT

In addition to five general conditions mentioned above, a person receiving Sehme Sadat must also fulfill five other conditions related to his/her character. These &:

(1) Must not be a salat-omitter (one who omits namaz) (whether openly or secretly)
(2) Must not be a drunkard (sharabi) (whether openly or secretly)
(3) Must not be openly fasiq (committing sins openly such as shaving beard, not observing hijab etc)
(4) Must not spend it in sinful activities
(5) Must not get encouragement in sins by receiving sehme sadat

According to present mujtahids (maraje), an adil (just) is that person who keeps away from all sins, whether major or minor. Current mujtahids & of the opinion that a person receiving khums, zakat or fitra need not be an adil (just), but he/she must fulfil all above five conditions.

For giving other charities such as mustahab sadqa, the condition of receiver being adil is not necessary, & these charities can also be given to any poor Muslim or even to poor non-Muslims (provided they & not hostile to Islam or Muslims).

According to all Mujtahids (present & recent past), the requirement of above five conditions on character & on the basis of Ihtiyate Wajib (precautionary wajib) for the person giving the sehme sadat.

RULES FOR GIVING SEHME IMAM

There & three methods of giving Sehme Imam portion to your Marja (Mujtahid whom you follow):

(a) Give personally to your Marja
(b) Give or send to legal representative (wakil) of your Marja
(c) Give to an organization, which has permission (ijaza) from your Marja

`^` Can you give Sehme Imam to other Mujtahids (other than your Marja) ? No. Even though Mujtahids & considered equal, there & two cases, in which you must refer to your own Marja – for getting fatwa (legal opinion) on an issue, & for paying Sehme Imam portion of khums.

`^` One must be very c&ful regarding ijaza (permission) given to an organisation. Normally the ijaza is in Arabic & in most cases it is conditional. One should be aw& of the meaning & conditions given in the ijaza document before giving Sehme Imam.

`^` Some wakils (representatives of Marja) have also been given extra powers from Marja regarding khums. These may include power of allowing delay of payment of khums, or power of allowing Sehme Imam to be used for other purposes etc.

`^` If your Marja dies, then the validity of all ijaza (permissions) of that Marja expires immediately, & all wakils (representatives) of that Marja lose their wakalat immediately.

`^` If you & still a follower of Ayatullah Khui (who is dead) through the fatwa of your living Marja, then you should calculate your khums according to the fatwas of Ayatullah Khui, but you will pay your khums to your living Marja (such as Ayatullah Seestani).

`^` If you send khums (sehme sadat or sehme imam) overseas or within your country by post or other means to the deserving or authorized people, & the money gets lost & does not reach those people, then the responsibility is yours, & you have to pay it again making sure that it reaches the intended person.

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RULES FOR SENDING SEHME SADAT

`^` According to current Mujtahids, it is better to give sehme sadat to deserving sadat in your own locality or city where you live, even though you & allowed to send sehme sadat to deserving sadat outside your own city. It is also preferable to give sehme sadat to your own poor sadat relatives in the &a where you live.

`^` If you could pay your khums locally, but instead you chose the option of sending your khums (or zakat or sadaqa) overseas or outside your own city by post or by other means, then you have to pay the expenses of postage, bank charges etc yourself, & such charges can not be deducted from the actual amount being sent.

`^` If it becomes wajib on you to send khums overseas or outside your own locality, then you can deduct the expenses of sending the khums from the actual amount. Sending khums overseas or outside your locality can become wajib if (a) there is no deserving sadat available, & (b) you & satisfied that there is no chance in future of getting a deserving sadat.

`^` If a sunni Muslim becomes a shia Muslim, then he has to pay the khums (& zakat & fitra) for the period during which he was a sunni if he gave such dues to a poor person, who did not meet those ten conditions required by the shia fiqh (as mentioned in previous Fiqh Notes) even if that poor person was deserving according to his sunni fiqh. But he does not have to repeat his salat, sawm, Hajj etc for that period if he performed these acts according to his sunni school of fiqh.

ITEMS ON WHICH KHUMS BECOMES WAJIB

`^` Khums is wajib on 7 types of things. One of the most common things on which khums becomes wajib is the annual savings from the income.

`^` Another thing on which khums becomes wajib is treasure (khazana). Treasure is that wealth, which was buried underground by somebody, & someone else finds that treasure all of a sudden. In such a case khums on that treasure becomes wajib immediately when it is found (not after one year).

`^` If you receive a gift (in any form or cash) from some one, & if that gift item remains unused for one year, then Mujtahids differ on whether khums is wajib on such gifts or not. According to Ayatullah Khui & Seestani, khums is wajib on unused gifts. According to Ayatullah Khumaini & Khamenei, khums is not wajib on unused gift.

Lecture # 12 (Friday 28 September 2001)
RULES ON CALCULATING KHUMS

The most common item on which khums is wajib is the ANNUAL SAVINGS from your income after deducting all allowable (mubah) expenses after one year. The normal amount of khums payable is 20% (or one fifth) of the annual savings on your chosen khums date. Annual savings include:

(a) all cash savings, &
(b) savings on those items which decrease as you spend (eg groceries, petrol, perfumes, oil etc), &
(c) any new but unused items bought or acquired during the year (eg a new shirt bought & not used)

Calculation of khums must be done as accurately as possible. It is not allowed to pay a lump sum amount (as a rough figure) every year & assume that the khums has been paid.

Islam does not recognize any haram activity in payment of khums or in any other acts of worship. Thus, apart from annual savings, the khums is also wajib on:

(a) Israf (extravagance) expenses during the year
(b) Haram expenses during the year

`^` Israf is a major sin & involves those expenditures, which & beyond the status (shaan) of a person.

`^` Islam allows a person to lead a comfortable life according to his needs & status but does not allow one to lead a life above his status in the society where he lives.

`^` Haram expenses include anything spent on those things, which & haram (prohibited) & sin in Islam. Examples: expenses on shaving beard, money spent on haram movies, haram musical tapes, lottery tickets, haram food or drinks etc.

`^` For calculation of khums, you can use Hijri year or any other year, which is common in the &a where you live.

`^` If you have been paying khums on a fixed date (say 30 June) every year, & if you want to change the date of khums, then you should change to an earlier date, & not to a later date. However, if you change to a later date, say 30 July, then you must also pay khums for that extra period (from 30 June to 30 July).

`^` If a person, who was regular in paying khums, dies, then it is wajib on his heir to work out & pay the khums of that person from his property for the period between his previous khums date & the date he died. (This mistake is found to be very common among momineen in the subcontinent).

`^` If, after calculating your khums on the khums date, you do not have sufficient money to pay your khums immediately, then it is allowed to pay your khums in installments so as to pay as early as possible.

`^` If, after paying your khums, you doubt whether your khums calculation was correct, then you should assume it to be correct. But if you & sure, that your calculation was wrong, then you have to recalculate it correctly. This rule is called 'Qaidah Firagh' in sharia, & applies to many other acts of worship.

WHAT IF YOU HAVE NOT PAID KHUMS BEFORE

If you have not paid khums on any thing (eg israf or haram expenses etc), on which khums was wajib, then there & two methods of working out khums in such cases:

(a) Ihtiyat (Precaution) method: You pay a maximum amount of khums on that item to the extent that you & more than sure that you have paid the khums. Example: if you spent $15,000 in a marriage & you do not know how much of it was israf expenses, then you pay a very high amount (say $3,000 which is khums on the whole $15,000) that makes you sure of having paid the khums.

(b) Compromise (Masalehat) method: You present your case to your Mujtahid or his wakeel, & he decides & agrees on the amount of khums you have to pay for that item. This method is wajib for that person who has never paid khums in his whole life.

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ITEMS EXEMPTED FROM KHUMS

There is no khums on the following items even if they remain unused for whole year:

(1) Gifts: Only for the followers of Ayatullah Khamenei & Khumaini. For the followers of Ayatullah Seestani & Khui, khums is wajib on unused gifts.
(2) Mahr (Dower): Amount fixed as Mahr in marriage & received by wife from her husband
(3) Khula Money: Amount paid by wife to husband when she wants to get a divorce from husband even when husband is performing all his wajib duties.
(4) Jaheez (Dowry): Items arranged by bride's father for the bride at the time of marriage.

Bride's father does not have to pay khums on these items on following conditions:

(a) Dowry is a custom in the &a where he lives,
(b) It is impossible to arrange the customary dowry in one year, & can only be collected bit by bit,
(c) Dowry must not be in cash.

Lecture # 13 (Friday 12 October 2001)
ITEMS EXEMPTED FROM KHUMS (Continued)

Khums becomes wajib on the owner of an item when it remains unused in his possession for oneyear. For example, if you buy a shirt for $20 today, & if the shirt is unused for one year from today, then khums will become wajib on your shirt (ie $20) payable at the completion of that year from today or on your selected khums date. Similarly, if you got $1000 in cash today, & you spent $400 from this amount during next one year from today, then khums will become wajib on remaining $600 payable at the completion of that year from today or on your selected khums date.
The first four items exempted from khums were discussed in Fiqh Lecture Notes #12. The next seven items, on which exemptions on khums may also apply, & as follows from a non-shia, & khums was not paid by them, then immediate payment of khums on that item is exempted on you. But khums will become wajib on you if it remains unused with you for one year.

(5) Items Obtained from a Shia: If you receive an item from a shia Muslim, on which khums was wajib & has not been paid, then according to Khui & Seestani, immediate payment of khums is not wajib on you, but according to Khumaini & Khamenei, you must obtain permission for itsuse from your marja or you will be responsible for payment of this khums. However, in any case,khums will become wajib on you if the items remains unused in your possession for one year. (Example: If a husband (muqallid of Khumaini) owns a house on which khums was not paid, then his wife cannot use that house unless she gets permission from her Mujtahid or arranges payment of khums)
(6) Khums-paid Item (Mukhammas): If khums has been paid on an item by its owner, then there is no khums on it ever in future as long as its owner remains the same. But if the same item goes to a new owner, then khums will become wajib on the new owner if the item remains unused for one year. According to Khumaini & Khamenei, if you have used an item, there is no khums after one year, but if you have stopped its usage due to change of circumstances, then, khums will become wajib on you after it remains unused for one year, on the basis of ihtiate wajib.
(7) Deceased Estate (Meeras):

~  If you receive your due estate (meeras) from the deceased Muslim, there is no khums on it even if it remains unused with you for one year.
~  If the deceased Muslim was not paying khums (or had debts), then khums (& debts) must be paid first from his property before distributing the estate.
~  If the estate you received generates income, then khums will become wajib on the income generated if that income remains unused for one year.
~  If the value of the estate increases (eg the value of the house), then there is no khums on the increased value even after one year.
~  If you receive the estate, which is more than your due sh&, (e.g. your brother gives away his sh& to you), then khums will be wajib on that extra sh& if it remains unused for one year.
~  If you get an estate all of a sudden (which was not expected) from somewhere, then khums is wajib on such estate if it remains unused for one year.

(8) Items of Na-baligh: Mujtahids differ if khums is wajib on items or property owned by a na-baligh (girl of under 9 lunar years of age, & boy of under 15 lunar years of age).

~  According to Khui, there is no khums on the items owned by a na-baligh.
~  According to Seestani, khums is wajib on the items owned by a na-baligh if it remains unused for one year, & the khums will be paid by the wali of the child (usually father).
~  According to Khumaini & Khamenei, no khums on the items as long as the child remains nabaligh, but khums will become wajib when he/she turns baligh & the item then remains unused for one year.

(9) Khums/Zakat/Wajib & Sunnat Sadqa: If a person lives only on receiving these religious dues, then Mujtahids differ if he has to pay khums on savings from such dues.

~  According to Khui, he has to pay khums on any amount or item unused for one year.
~  According to Seestani, no khums if his savings is from Khums or Zakat money received, but he must pay khums if savings is from wajib & sunnat sadqa.
~  According to Khumaini & Khamenei, no khums at all on any savings from such dues.

(10) Usual Necessities: There & certain necessary items, which & expected to be available inyour possession anytime, & these & exempted from khums even if they remain unused for one year. Examples of such items include: pain killer medicines, one Quran, one Tohftul Awam book, phone directory, one normal dictionary, items related to specific profession, etc. The criterion of determining such items is that people express surprise if they come to know that you do not possess such basic items.

Lecture # 14 (Sunday 21 October 2001)
ITEMS ON WHICH KHUMS IS WAJIB EVEN WHEN THEY & USED

Khums normally becomes wajib on an item when it remains unused by its owner for one year. But there & three expenses on which khums will become wajib even when such items & used by the owner during the year. These &:

(1) Israf (extravagence) expenses: If you spend money on anything which is beyond your status in the society where you live, then khums will become wajib on such expenditure. Why? Because Israf is haram in Islam.
(2) Haram expenses: If you spend money on any haram item or activity, then khums will become wajib on such expenses.
(3) Business expenses on assets: These & explained below.

KHUMS ON BUSINESS EXPENSES

If you own and run a business, and if you buy something (an asset) for use in your business, then khums will become wajib on such items on your khums date. For example if you buy a car, or a building or machine or even a lamp for your business, khums is wajib on such items.
If you hire something for your business (e.g. hire a car, a building, a machine, or hire a person), and if you pay rent or wages for such things, then there is no khums on such expenses.
If you have paid khums once on a business item (which you had bought and is in use) on your khums date, then, on your next khums date, you can get a rebate in khums calculation due to its depreciated value. For example, if you buy a car for business for $10,000 today, then after one year (or on your khums date), you will pay khums on the purchase price ($10,000) of the car. If at the end of second year
(or on the next khums date), the value of the car drops to $8,000, then you will gain a rebate of $2,000 on your savings at your khums date, i.e., if your all business savings comes out to be, say, $20,000, then you will pay khums on $18,000 (i.e. $20,000 - $2,000). The same method will apply on each subsequent khums date.

~ If you buy an item mainly for your personal use, and use it also for your business, then there is no khums on it. 
~ If you buy an item mainly for your business use, but you use it occasionally for your personal use, then khums will become wajib on such item at your khums date.

Note: Rulings on khums on business expenses & quite detailed and & not covered fully in these
Notes: Please refer to the Risala of your Marja for other details.

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PAYING KHUMS IN CASH OR IN KIND

If khums becomes wajib on an item, then khums should be paid out of that item (if it is practicable). But Islamic sharia also allows you to pay an equivalent value of it in cash as khums. For example, if you have 5 suits of equal value unused for the whole year, then you can give one suit as khums to your marja or his wakeel (because marja or his wakeel can accept both sehme sadat as well as sehme imam portion of khums). If you have a shirt unused for one year, then you have to pay khums on it in cash.

According to all current mujtahids, you can not pay another item in kind of equivalent value as khums on the basis of Ihtiate Wajib. For example if your calculated khums comes out to be $500 in cash, then you can not give gold (worth $500) as khums. However, you can do this by gaining permission from your marja or his wakeel.

If khums was wajib on an item (not cash) and was not paid on its khums date and if the value of that item (eg a house) has since increased, then khums will be calculated on the increased value of that item. But if the khums was wajib on cash and was not paid on its khums date and then you used this cash to purchase an item and the value of that item has since increased, then you have to pay khums on the actual value, not the increased one.  

If you borrow $100 in cash from someone, then according to sharia, you have to return $100 in cash to him on the repayment date even if the value of cash has decreased. But if you borrow a non-cash item or a property from some one, then you have to return the same item or the actual value of that item applicable on the specified date of loan repayment. In certain cases, you have to return the highest value of the item from the date of borrowing to the date of returning.

In the calculation of khums on your khums date, it is necessary to work out khums as accurately as possible on all items on which khums has become wajib. It is possible that you may forget including certain small items (such as unused sajdahgah, kafan, prayer mat etc) in your khums calculation. In order to account for khums on such items, it is advisable to add an extra amount of khums to your final khums amount such that you & satisfied that all wajib items have been covered. Later on, if you remember such omitted item, whose value is less than the extra amount of khums added, then you need not worry. However, if you have forgotten any item of big value, which is beyond the value of the extra amount of khums added, then khums must be calculated separately on such items. 

OWNERSHIP OF SEHME SADAT

After receiving sehme sadat, the sadat becomes the sole owner of sehme sadat amount and he can use it in whatever way he deems fit. It is not allowed to attach any condition with it if you give sehme sadat to a deserving sadat directly (as permitted by Khui and Seestani). For example, if a poor sadat was asking khums for buying his food, you can not attach a condition that he must buy the food from the khums. Same rule will apply in case of fitra. 

A sadat, who has received sehme sadat, is allowed to use this amount on his non-sadat dependents. Similarly, a non-sadat, who has received fitra, can use this fitra on his sadat dependents. 

If, after getting permission from your Marja or his wakeel, you decide to pay sehme sadat in kind (instead of in cash) by setting up a small business or building a house for the poor sadat, then the ownership of that business or property must also be given to that sadat. It is not allowed to keep the ownership in your name unless you have obtained specific permission from your Marja for such ownership.

Lecture # 15 (Sunday 28 October 2001)
WHEN TO PAY KHUMS

There & three methods on when to pay khums when you receive an income or any new item:

Method 1: You pay khums immediately: When you receive an income or any item, you & allowed to pay khums on the whole amount or item immediately. Then you do not have to worry about waiting for one year and paying khums on net savings or unused item.
Method 2: You pay khums after one year: When you receive an income or any item, then khums can be paid after one year on the net savings of that income or on the item if it remained unused.
Method 3: You pay khums on your selected khums date: You fix a date of your khums calculation in a year, and work out and pay khums on all savings and unused items existing on that date every year. Then you do not have to worry whether the income or the unused items were one year old or less.

FIXING A DATE FOR KHUMS

Mujtahids differ on fixing a date of khums payment as explained below.

According to Ayatullah Khamenei, a person must fix one date of khums in the year, for calculation of khums on all savings and unused items etc existing on that khums date. In such a case, he may have to pay khums even on those unused items or income, which he acquired only a few days or even a day before the khums date. Ayatullah Khumaini's fatwa on this issue is a bit complex, so one should refer to his Risala.
According to Ayatullah Khui and Seestani, you have two options of fixing your date:
Option 1: You fix only one date of khums in the year for calculation of khums for all savings and unused items etc existing on that khums date. In this case, you may have to pay khums even on those unused items or income, which was acquired only a few days or even a day before your khums date.
Option 2: You fix several dates of khums for different types of items and income but in this option, you have to keep a strict account of each income and each item separately for the whole year, as you will be paying khums regularly on each khums date of each item and income. Remember khums payment becomes wajib one year after acquiring the income or the item if it remains unused.
Option 1 is simple to manage because you have to worry about khums calculation only on one date, but you & likely to pay a higher amount of khums in a year. Option 2 is difficult to manage but you & likely to pay less khums in a year.
Ayatullah Khui and Seestani also allow that you can combine the two options for payment of your khums. For example, you can fix one khums date for all your household savings and regular monthly income, and fix a separate date for any big income or item you get in the year.

PAYING KHUMS IN ADVANCE

Paying khums before it has become wajib (i.e. paying khums in advance) is not valid and is not considered khums in Islam. Khums on an income or an item can be paid only after you have received the income or the item. You can not pay khums in advance on anything, which you expect to receive in future.
If you receive some money (or income) today, then according to Islam, khums becomes wajib immediately, although you & allowed to pay your khums on this money after one year from today after deducting your lawful expenses from this money. Thus if you wish, you can pay khums on your income or any other item immediately you receive it and then you need not worry about paying khums on it after one year.

EXTRA KHUMS PAID BY MISTAKE

If you have paid extra khums by mistake (due to miscalculations or ignorance of khums rules), or if you have paid khums by mistake on certain items on which khums was not wajib, then you can not take your khums back or can not adjust this extra khums in the following year khums amount. However if the person receiving the sehme sadat knew that the khums was not wajib on you, then you can take it back.

MORE ON ISRAF (EXTRAVAGENCE)

Israf is haram and hence khums is wajib on such spending. How to determine if a spending is considered israf in Islam? Israf is determined by the status (shaan) of a person in the community where he lives and the urf (opinion of the people in the community he lives). If majority of the people in the community where he lives express surprise on a big expenditure made by him (in relation to his existing status), then this is considered israf.
Is israf allowed in spending money on good deeds? Some examples of israf on good deeds &:

~  You give a huge donation in charity, which is beyond your status,
~  You sell your sole home and use this money to build a mosque,
~  A gift of huge value given by one momin (above his status) to another momin, etc etc

Mujtahids differ if such israf type spending on good deeds is allowed or not.

^ Ayatullah Khui and Seestani say that it is allowed to do israf in good deeds (and khums is not wajib on such spending).
^ Ayatullah Khumaini and Khamenei say that israf is not allowed even in good deeds (and khums will become wajib even on such israf spending on good things)

SOME MISCELLANEOUS RULES

If khums payment has become wajib on you and you & not in a position to pay immediately, then it is allowed to ask someone to pay that khums amount on your behalf (if he agrees to do so), and then settle the amount with him later if required. For example, the husband can pay khums on behalf of his wife and children on a common khums date if the wife and children provide him with all the information of their personal savings etc. If khums has become wajib on an item on a khums date, but you do not know its value, then it is wajib to determine its value. If you can not determine its value, then seek the advice of your marja or his wakeel to determine the khums on that item.
If an item, which was of value when you got it, loses its value and is of no value on your khums date, then there is no khums on that item.

Lecture # 16 (Sunday 4 November 2001)
PAYING KHUMS ON BEHALF OF ANOTHER PERSON

Paying khums on behalf of another person is not allowed without getting permission from that person, because khums is an act of worship and niyyat (intention) is wajib. However, if you get permission from the Mujtahid or his wakeel for that person then it is valid to pay khums on that person’s behalf (even from that person's own assets and money) even if that person refuses to give permission. A mujtahid (or his wakeel) has more authority in khums than the person paying the khums. (For example, a wife can pay khums on behalf of the husband in this way if husband does not pay or believe in khums).

RECEIVING GIFT/DONATION FROM A PERSON WHO DOES NOT PAY KHUMS

When a person does not pay khums on his savings or items when khums becomes wajib, then those income or items & considered haram (unlawful) in Islam. According to Ayatullah Khui and Seestani, you & allowed to receive a gift or money from a person who does not pay khums whether you know or do not know about this fact. But according to Ayatullah Khumaini and Khamenei, you & not allowed to receive such gift or money if you know that khums was wajib on it and has not been paid.
If a non-cash donation (an item) is given to a mosque or imambargah by a person and it is known that khums was wajib on that item and was not paid, then it is the responsibility of the trustees or administrators of that mosque/imambargah to get permission from the Mujtahid or his wakeel before accepting such item. But if the donation is in cash, then it can be accepted without permission from Mujtahid.

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KHUMS AND PARTNERSHIP IN BUSINESS

If you start a partnership in business with any shia, who does not pay khums after one year, then according to Ayatullah Khumaini and Khamenei, the partnership should not be continued, and it is not allowed for you to use the whole business earnings because such earning is not considered halal. But according to Ayatullah Khui and Seestani, it is allowed to continue such partnership.

KHUMS-PAID ITEMS

If khums has been paid on your cash money, then there is no khums in future on this cash money even if you change its form. For example, if you have $100 on which khums has been paid, and if you buy a suit from this money, then there is no khums on the suit even if it remains unused for one year.
But if you have not paid khums on an item because the item was in use (hence khums was not wajib on it) and if you convert it into cash, then khums will become wajib on the cash after one year if it remains unused or on whatever remains after use. For example, if you sell your house, which was in use, then khums will become wajib on the cash from the sale if it remains unused for one year or on whatever remains unused after one year. If your house was already khums-paid, then there is no khums on the cash from its sale.

KHUMS AND INSURANCE

If you pay premiums to the insurance company to insure any item (such as car, house) or to insure your life such that you do not get the premium back at any stage in future, then there is no khums on such paid premium.
If you pay premium to insure your life (or life of any other person) such that the company will pay lump sum amount at the time of death, or will pay you a lump sum amount at the end of an agreed term, then there is no khums on the premium paid, but, according to all four Mujtahids (Khui, Seestani, Khumaini, Khamenei), the lump sum received will be considered as a gift and rule of khums for gift will apply (i.e. khums will apply on unused gift money after one year according to Khui and Seestani, and no khums will apply according to Khumaini and Khamenei).

KHUMS ON SUPERANNUATION (OR PROVIDENT FUND)

Superannuation is a scheme in Australia , in which an employee contributes a certain percentage of his salary to a fund, and his employer also adds some amount to his fund periodically. At the time of retirement (or resignation), the employee receives a lump sum amount of all saved money including interest, or instead, he can get monthly pension from this fund, or he can get a combination of both. For khums calculation, at the time of receiving any lump sum, you have to work out the total amount of your contribution from your salary (i.e. employee's contribution), and then apply the following rules.
If the scheme does not allow you to withdraw your contributions whenever you want, then after receiving the lump sum, khums will become wajib on any unused employee's contribution portion after one year, and the rest of the lump sum will be considered as a gift and rule of khums for gift will apply.
If the scheme allows you to withdraw your contributions anytime, then after receiving the lump sum amount, you will have to pay khums immediately on that portion of the lump sum, which you contributed from your salary, and the remaining portion of lump sum will be considered as gift and rule of khums for gift will apply.

KHUMS ON FIXED DEPOSIT

If you pay money in a fixed deposit (or in any savings scheme), and if you & allowed to withdraw that money during the year or on your khums date, then you have to pay khums on that deposited money on your khums date. But if you & not allowed to take out that money during the year, then you will pay khums immediately upon receiving your total contributed portion. Khums will become wajib on any increased amount of this savings one year after you get it if it remains unused.

KHUMS ON LOAN (QARZ)

` If you give a loan to someone, and if you can get it back on your khums date, then you must pay khums on that loan (even if you decide not to get it back due to laziness or due to good terms with the borrower, etc).
` If it is not possible to get your loan back on your khums date, then it is not wajib to pay khums on that loan on that khums date. But then you must pay khums immediately upon getting the loan back.
` However, if you wish, you & allowed to pay khums on your loan on your khums date even if you can not get it back.

Lecture # 17 (Sunday 11 November 2001)
PAYING PAST WAJIB KHUMS FROM FUTURE INCOME

When khums becomes wajib at the end of the year on your khums date, then khums should be paid out of the actual savings of that year, and not from your future income received after that khums date. However, Islam allows you to pay your past wajib khums fully or partly out of your future income only when you also pay khums on the khums amount paid out of that future income. (This is a common mistake committed in khums payment)
For example, if your net savings on your khums date of 30 June was $1000, then the khums of $200 must come out of the same $1000. But if you delay your khums and you want to pay that $200 khums out of the income received in July, then you must also pay khums ($40) on that $200 immediately or on your next khums date. Hence, if you pay khums immediately from your July income, your total khums will be $200 + $40 = $240. (Thus practically you have to pay 24% khums instead of 20% due to paying it from future earnings).

PAYING KHUMS WHEN YOU TAKE A LOAN (PRINCIPAL)

When you take a loan, then there is no khums on that loan amount (Principal) even if it is kept unused with you for more than a year.
If you pay loan repayment installments periodically on your loan, then you have to pay khums on all installments paid at the end of the year if the Principal remains unused with you for the whole year. However if you utilize or spend the Principal at any stage for your lawful and necessary purpose, then there is no khums on the loan installments paid after that stage.

PAYING KHUMS ON LOAN REPAYMENT INSTALMENTS

When you take a loan, then your loan repayments can be of two types:

(a) yearly payments,
(b) periodic payments during a year.

There & different rules for khums on these two types.
Yearly Repayments: If you take a loan (e.g. for house or car etc), and have used the loan, then in the first year of the loan period, you & allowed to pay your whole savings, if you wish, as part of your yearly loan repayment and hence pay no khums on such whole savings. But in the second year or subsequent years of your loan period, you can not pay your whole annual savings as part of your yearly loan repayment and hence khums must be paid on such annual savings.
Periodic Repayments: If you make periodic (say monthly) repayments of your loan (such as mortgage loan for house), do you have to pay khums on such installments on your khums date ? This will depend upon whether your loan is a Necessity or a Non-necessity, as explained below:
If your loan is a Necessity (e.g. buying home for your own use), then there is no khums on your periodic loan installments paid. Even if you make additional lump sum repayment during the year to reduce your Principal, there is no khums on such lump sum repayments. (If the bank or lender allows you to withdraw such additional lump sum repayments at any stage in future, then you have to pay khums immediately on such withdrawn amount if khums was not already paid)
If your loan is a Non-necessity (e.g. loan for buying a second home as investment, buying a vacant plot of land, or any loan which is not utilized in the first year of loan e.g. taking a loan for medical operation which is due after one year), then:

(a) (a) If the item/service purchased from the loan has been consumed within first year (e.g. medical treatment completed), then there is no khums on periodic loan repayments,
(b) (b) If the item (asset) purchased from the loan is still existing after one year (e.g. a second home or a vacant plot purchased), then khums will be payable on periodic loan repayments (or any additional lump sum repayments).

In case (b) above, if that Non-necessity item (asset) becomes a Necessity at any time, then there is no khums on periodic loan repayments made from that time onward (e.g. you build a house for your own use on the vacant plot, which was initially considered as non-necessity)

TAKING LOAN FROM A KAFIR

If a kafir is giving you a gift or a loan with his own stated or unstated intention, then you & allowed to accept such a gift or loan with your own unstated and different intention. This is called the rule of Istinqaz in the terminology of fiqh.
According to all Mujtahids, taking a loan with interest (riba) is haram (sinful), but is such a loan batil (void) also ? According to some Mujtahids, such a loan is batil and so you can not use the Principal loan amount. But according to Ayatullah Khui, Seestani, Khomeini, and Khamenei, the act of taking such a loan is haram but the loan itself is not batil.
According to Ayatullah Khui, Seestani and Khamenei, if a kafir bank is giving you a loan happily (even with its condition of interest), then at the time of transaction, you can accept it with the intention of istinqaz i.e. you & taking the money from a kafir and with no intention of taking the loan and with no intention of paying interest (even though you may actually have to sign the formal documents and may have to pay back loan with interest). 
A loan from a kafir bank can be accepted with the intention of istinqaz even if there is no extreme necessity for such a loan (e.g. buying a second home, or buying a plot etc). 
The same rule of istinqaz can be applied when borrowing and using money from a credit card issued by a kafir bank.

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