Title: After retirement I invested my PF amount in a business looked after by my sister-in-law in Australia. She deals with properties and owns many properties and Estates and get rent from them. She must have taken bank loans to purchase the properties and must have paid bank interest also. She suggested to me to invest my amount in her business and she would give me 14% profit for the first year. Each year the profit percentage changes. For last year I got about 18% profit. It is also agreed that if she incur losses, the losses will be shared by me also. Further she said after deducting all the maintenance expenses etc., the profit will be calculated each year. It was also agreed that whenever I want I can discontinue the business with her and I will get back my whole invested amount. Could you tell me with the above conditions the profit what I am getting is Halal ? Suppose I discontinue the business with her and if I get back my whole amount, should I pay the Zakath for the previous years when the amount was in her possession or should I pay the Zakath once the amount come to me and remain with me for one full year? Right now I pay the Zakath for the profit amount which remains with me unused/surplus for one year.

Question: Janab Mufti Saheb Assalamu Alaikum After retirement I invested my PF amount in a business looked after by my sister-in-law in Australia. She deals with properties and owns many properties and Estates and get rent from them. She must have taken bank loans to purchase the properties and must have paid bank interest also. She suggested to me to invest my amount in her business and she would give me 14% profit for the first year. Each year the profit percentage changes. For last year I got about 18% profit. It is also agreed that if she incur losses, the losses will be shared by me also. Further she said after deducting all the maintenance expenses etc., the profit will be calculated each year. It was also agreed that whenever I want I can discontinue the business with her and I will get back my whole invested amount. Could you tell me with the above conditions the profit what I am getting is Halal ? Suppose I discontinue the business with her and if I get back my whole amount, should I pay the Zakath for the previous years when the amount was in her possession or should I pay the Zakath once the amount come to me and remain with me for one full year? Right now I pay the Zakath for the profit amount which remains with me unused/surplus for one year. Allah Hafiz

Answer ID: 27248Posted on: Sep 1, 2020

Bismillah hir-Rahman nir-Rahim !

(Fatwa: 2091/B=1687/tb=1431)

It is not lawful if you invested your money in the business with the condition that you will get 14% or 18% as fixed profit. However, it is lawful to take the profit if the profit rates keep on changing each year and after the deduction of all the expenses etc the profit is calculated and the profit is not fixed. You will have to pay the zakah of all the previous years after separation. If the money was in her possession and you hoped fully to get that money, in this case too the zakah of that amount should be paid by you. At hand, you will have to pay the zakah of what you saved the whole year, whatever you have invested in the business and whatever you own besides it.