Selected Rulings & Guidance

Is income from cryptocurrency trading permissible (halal)?

The permissibility of cryptocurrency trading is a matter of contemporary scholarly debate. The predominant position among Shari'ah scholars is that trading in cryptocurrencies that serve a genuine commercial purpose — functioning as a medium of exchange or underpinning a real asset — may be permissible, provided the transaction is free of gharar (excessive uncertainty) and maysir (speculation). Day-trading purely for speculative gain, with no underlying productive activity, falls closer to maysir and should be avoided. Each currency and trading structure requires individual analysis; a blanket ruling is not possible.

Can Zakat be paid in advance before a full lunar year (hawl) has passed?

Yes, it is permissible to pay Zakat in advance for one or multiple years, provided that the individual already possesses the nisab (minimum threshold of wealth) at the time of the advance payment. At the end of the actual Zakat year, one must calculate their total wealth to ensure the advance payment covered the total amount due. If the wealth increased, any shortfall must be paid; if it decreased, the excess is considered an advance for the following year or a voluntary charity (sadaqah).

Is it permissible to buy goods on an installment plan at a price higher than the cash price?

Yes, it is generally permissible to sell goods on a deferred payment or installment basis at a higher price than the spot (cash) price, provided the transaction is structured as a valid sale (murabahah or musawamah). The total price and the installment schedule must be explicitly agreed upon at the time of contract execution. Once the contract is signed, the seller cannot increase the price further if the buyer delays a payment, as any late payment penalty charged for the lender's benefit constitutes prohibited riba (interest).

What is the ruling on taking out a conventional mortgage to purchase a home?

Conventional interest-based mortgages involve riba (usury/interest), which is explicitly prohibited in the Quran and Sunnah. The majority scholarly position is that such mortgages are impermissible except in cases of dire necessity (darurah), where no halal alternative exists and the person would face severe hardship without housing. In countries where Shari'ah-compliant home finance products (such as diminishing musharakah or commodity murabahah) are available, necessity cannot be claimed merely because the conventional product is cheaper or more convenient. Individuals are strongly advised to explore certified Islamic finance institutions before resorting to conventional lending.

How is the distribution of inheritance (mirath) calculated for a deceased father with a wife, two sons, and a daughter?

Under the Hanafi school, the estate is first settled of debts and funeral expenses. The remainder is distributed as follows: the wife receives one-eighth (1/8) as a Quranic fixed share (faridah), since the deceased leaves children. The residual seven-eighths (7/8) passes to the 'asabah (residuary heirs): the two sons and the daughter. Among residuary heirs, a son receives double the share of a daughter. The estate is therefore divided into five equal parts for the three children — each son receives two parts and the daughter receives one part of the seven-eighths residual. A full calculation requires knowledge of the precise estate value and confirmation of any outstanding debts or bequests.

Is it obligatory to pay zakat on gold jewellery that one regularly wears?

This is a well-known point of difference among the schools. The Hanafi position — which this office follows as its primary reference — holds that zakat is obligatory on gold jewellery that meets or exceeds the nisab threshold (87.48 grams of gold) regardless of whether it is worn regularly or stored. This is based on the generality of the Quranic verse and the hadith of the Prophet ﷺ to the women who were wearing gold bracelets. The Shafi'i and Maliki schools hold jewellery designated for personal use to be exempt. Given the difference of opinion, it is considered praiseworthy for a woman to pay zakat on her jewellery in accordance with the Hanafi position as a precaution.