Salaam.
I hope all is well. I have read the articles on purifying your wealth on the IFG website but I am still a bit confused. In regard to purification, how often should I do this? Say I have invested in Shariah-compliant stocks but I still have to purify 5% of my earnings, do I do this on a weekly basis? Or monthly, quarterly, annually? Also do I have to take out 5% from my savings account directly or can I calculate 5% of my earnings and donate via cash I have on hand?
JzkA
Wasalam
May Allah bless you
You can do the purification everytime you are paid the dividends or you sell shares.
And Allah knows best!
JzkA for answering, May Allah reward you.
Also does this specifically have to come from our brokerage account or can we pay this via other means via cash in hand for example?
I do not see any issues with paying from other sources.
And Allah knows best!
As Salam alaikum @Mufti_Billal
Under what category should we purify this
As interest received , hence giving it to NZF as interest disposal or can it be given as sadaqa too.
With Regards
Siraj Haq
Wasalam
On the NZF page there should be a heading for Riba or Interest, this would probably be found under giving sadaqah section.
Kind regards
Jazakallah @Mufti_Billal
My query was, where does this disposal of purification sit under
Riba - not expecting any reward for donating this amount as it is classified as involuntary riba recieved, hence disposing it with no intention of reward.
OR
Voluntary Sadaqah - expecting reward as this purification might not be purely for riba received.
With Regards
Salaam alaykum,
Still a question here. If I understand correctly, if the stocks do not provide any dividends, is it enough to only purify once when selling the stock over the amount received? Or do I miss something? Really hope to hear from you jzkA
Wasalam
So purification is needed when ever you get access to the income or profit, so if you don’t receive any dividends, then you will purify the profit you are receiving when you sell your shares.
And Allah knows best!
JzkA, thank you so much for this clarification. I remain confused on what is meant with capital gain in all articles then. Is that the profit you receive once you sell the share (like you say) or is it the yearly increase of the share’s market value and should the amount of increase be purified each year as well, since this could be seen as profit (but without having access to it yet)?