Can someone stuck in a ribā-based loan give voluntary charity, or do they need to pay off the ribā-based loan first?

 Q: Can someone stuck in a riba-based loan give voluntary charity, or do they need to pay off the riba-based loan first, given that is a duty, and thereafter resume with giving voluntary charitable donations? الجواب حامدا ومصليا ومسلما ومنه الصدق والصواب   A: One who has taken a haram loan or a conventional mortgage should […]

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Is it permissible to purchase stocks using call and put options?

Q: Is it permissible to purchase stocks using call and put options? الجواب حامدًا و مصليًا و منه الصدق و الصواب A: Call and put options are essentially the sale of a right which one party gives to another in return for a fee. The option holder purchases the option to hedge against possible negative […]

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Is it permissible to use a non-islamic business account that does not accrue interest?

Q: Is it permissible to use a non-islamic business account that does not accrue interest for a ltd company? الجواب حامدا ومصليا ومنه الصدق والصواب A: It is permitted to use an account of a conventional interest-based bank that does not bear interest for a limited company. Any deposits in the account are essentially a […]

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Is the final salary/defined benefit scheme permissible?

Q: I am a teacher in a secondary and one thing that is offered to all teachers is the Teacher Pension scheme. such a scheme or any pension scheme deemed as halal, would it be better to opt-out of such schemes? It is the teacher pension scheme offered by the government. Each month an amount […]

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Is it permissible for me to ask a colleague who is a student to use his student identification to get the discount, knowing that it’s for me?

Q: I want to buy some software for my computer for the overall benefit of the charitable organisation I work for, is it permissible to ask a colleague who is a student to use his student ID to get the discount, knowing that it is in fact for my work usage? Will my colleague be […]

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Who is liable to pay the Zakat for a limited company?

  Q: Is a limited company an independent entity in Islam and therefore liable for its own Zakat or does its value belong to the shareholders? الجواب حامدا ومصليا ومسلما ومنه الصدق والصواب A: The liability to pay zakat falls on the shareholders and not the company itself. If taxes have been incurred on the zakat […]

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Private pensions involve investment into the stock market, whereby, each person is required to select a level of risk they wish to undertake; low, medium, high. Is this risk halal?

Q: Private pensions involve investment into the stock market, whereby, each person is required to select a level of risk they wish to undertake; low, medium, high. Is this risk halal?   The pension advisors mention that you may not receive the amount you invest (as a minimum) if you take a greater risk in investments. الجواب […]

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Are you allowed to give money to pay off someone’s debt while knowing that part of that is likely to go towards paying off of interest?

Q: Are you allowed to give money to pay off someone’s debt while knowing that part of that is likely to go towards paying off of interest? The recipient of the financial help is a non-Muslim.   الجواب حامدا ومصليا ومنه الصدق والصواب A: In principle, if you gift or lend someone some money that […]

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What is the Islamic position on ‘Spread Betting’?

Q: What is the Islamic position on ‘Spread Betting’?  Please find below two definitions given for this activity. From http://www.investopedia.com/terms/s/spreadbetting.asp Definition of ‘Spread Betting’ A type of speculation that involves taking a bet on the price movement of a security. A spread betting company quotes two prices, the bid and offer price (also called the spread), […]

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My father said that if he gives me money as a gift, I must buy a house. Is this a type of riba statement?

Q: My father said that if he gives me money as a gift, I must buy a house.  Is this a type of riba statement?    الجواب حامدا ومصليا ومسلما ومنه الصدق والصواب A: If your father gives you some money and stipulates that you must purchase a house therewith, irrespective as to whether the […]

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Is paying off a person’s debt permissible if that debt was taken out for something deemed impermissible in Sharī‘ah?

Q: Is paying off a person’s debt permissible if that debt was contracted for something deemed impermissible in Sharī‘ah?   الجواب حامدا ومصليا ومنه الصدق والصواب   A: In principle, if you gift or lend someone some money that person is free to utilise that money in whichever way he/she feels even if you have […]

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