Purification! How to Purify in this below-mentioned Scenario
Loss and Profitable trades in the same stock with different time frames and trades
Scenario
Stock Name: ABC
Date: 01 Jan 2024
Bought: 1000 shares @ 100 Rs/Share
Total Invested Amount: 1000 x 100 = 100,000 Rs
Date: 20 Jan 2024
Sold: 400 shares @ 80 Rs/Share
Total Losses Amount: 40,000 – 32,000 = 8,000 Rs
(400 x 80 = 32,000 Rs)
Date: 20 Apr 2024
Sold: 600 shares @ 130 Rs/Share
Total Profit Amount: 78,000 – 60,000= 18,000 Rs
(600 x 130 = 78,000 Rs)
Now the question is whether we should Purify the Total Profit Amount from the second profitable trade or consider the loss trade also, which is 8,000 Rs. Here, we will subtract it from the total profit amount of 18,000 Rs, which will be 10,000 Rs Only.
Replied By Ulama :
In the above scenario, there are two different trades. In the first trade dated 20 Jan 2024, the Investor gets a loss of 8,000 Rs and in the second trade on 20 Apr 2024 Investor gets a profit of 18,000 Rs.
Purification will apply:
Purification will apply only in profitable trade because impure profits are mixed in the second trade only, so in simple words the amount where purification will apply where the impure or non-sharia income money mixed and which was traded on 20 Apr 2024 with the profit of 18,000 Rs.
So, you should purify from 18,000 Rs.
Note:
In this scenario, the trade with the loss has nothing to do with trade with profit because both are different trades and in the loss trade there is no question of impure income mixing.
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