What is the rate of Wasiyyat payments on income and Wasiyyat payment on property? –
A Musi is required to:
- Bequeath 1/10th to 1/3rd of his/her property on his death.
- Pay Chanda Hissa Amad at the rate of 1/10th to 1/3rd on income from all sources during his lifetime except income from property.
- Pay Chanda Hissa Amad at the rate of Chanda Aam (i.e., 1/16th) on income arising from any property.
At the time of filing for Wasiyyat, if he does not have a steady income what would an applicant write as his monthly income? –
If someone does not have a steady income, he/she can write estimated monthly income, or average income of 6 months or a year.
Is there any guiding principle regarding women who do not themselves have a source of income and Chanda is received from them on the basis of pocket money? –
The procedure usually followed for payment of Chanda Wasiyyat by a woman not having her own source of income is that the husband should fix an appropriate amount as pocket money that would be considered as income of such a woman and she, for the sake of maintaining the continuity of her financial sacrifice, will pay Chanda Wasiyyat on her pocket money.
Women are required to pay Chanda according to their living standard. The sacrifice made by a Musi should stand out as compared to the sacrifice made by a person paying Chanda Ām. But the pocket money so arrived at should not be less than the minimum amount fixed for the country of residence.
Minimum standard of income (also known as ‘pocket money’ for non-earning members, including housewives/homemakers) fixed by Markaz for the UK Jama’at is £180 per annum. This rule does not apply to students.
Is it binding upon a Musi student to pay Chanda Wasiyyat upon his pocket money-stipend? –
Student scholarships or stipends will not be subject to Chanda at the prescribed rates. However, students are expected to get a sum fixed after consultation with the Jamaat and pay their Chanda accordingly.
Along with paying Hissa ‘Amad upon their full salaries, employees also contribute a certain amount each month on the basis of which they receive pension upon retirement. Will Chanda be payable on the pension in such a case? –
Yes, Hissa Amad shall be payable upon pension. This is because the monthly contribution consists of a very minor amount, whereas the monthly pension received upon retirement is more substantial. If someone still wants to deduct this amount from his pension, he will deduct only the amount which he has contributed. Chanda will be payable on the rest.
What types of expenses are allowed to be deducted from one’s income with regard to Chanda? –
The income upon which Chanda is payable refers to all kinds of income from all sources. Only the following payments can be deducted from the actual income:
1. Allowances given to employees, whose expenditure is not in the hands of the employee.
2. Mandatory taxes levied by the government e.g., taxes, mandatory insurance, local rates.
3. Allowances given to employees which are meant for specific expenditure e.g., uniform allowance, education allowance, children’s allowance.
4. Allowances, which are paid for the performance of official duties e.g., TA (traveling allowance), DA (Per Diem).
Will the amount paid for house insurance be deducted from the actual income with regard to Chanda? –
The amount paid for house insurance, even if it is mandatory, will not be deducted from the total income with regard to Chanda. If it is necessary to have the house insured in order to borrow from a mortgage company, the buyer is still the beneficiary. Such expenses will, therefore, be considered usual. It is not permissible to deduct any instalment, mortgage payment, interest or insurance from one’s real income with regard to Chanda.
Can health insurance be deducted from income with regard to Chanda? –
The amount paid for health insurance will not be deducted from income even if it is mandatory. Except in circumstances where it is deemed to be tax and its benefits cover the whole community instead of the said individual or family.
If a Musi owns an immoveable property e.g., a house, which he has rented out to someone, does he need to pay Hissa Amad on income coming as rent on that house? –
In case any income accrues from property of the Musi then Hissa Amad shall be payable on such income at the rate of Chanda Aam i.e., 1/16th.