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Question: I wanted to know if it was sinful or wrong, to read the Qur'an for a deceased individual, in a congregation/group, or is it just a bid’ah (innovation)?
Answer:

This is an issue on which scholarly opinion is divided. While there is a unanimity of opinion that commemorating the seventh day or fortieth day or death anniversaries, and holding Qur’anic recitations on such occasions is a reprehensible innovation to be shunned, reading the Qur’an on other occasions in a group and making a dua for the deceased is not all considered reprehensible, according to many scholars. Some of them not only consider it as permissible but even as a good practice.

It should, however, be pointed out that paying people to recite the Qur’an is considered undesirable. There is no harm if people on their own volunteer to read the Qur’an and offer a supplication donating the rewards for the deceased.

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