“Those who are miserly with that which Allah has given them should never think it (holding back due to miserliness) to be good for them; rather, it is bad for them. They will be made to wear on their necks as collars that which they were miserly with on the Day of Qiyaamah. And to Allah alone belongs the inheritance of the heavens and the earth. And Allah is All Aware of what you do. (Surah Aal ‘Imraan v180)
In this verse, Allah Ta‘ala mentions one of the evil traits which the Jews possessed – the quality of miserliness. He further explains the severity of miserliness and warns those who have this trait and practice on it.
In the terminology of sharee‘ah, the term “bukhl” (miserliness) refers to the act of not spending that which is obligatory to spend in the path of Allah Ta‘ala. Therefore, miserliness is haraam (forbidden). As for the occasions where spending is not obligatory but only recommended (mustahab), then not spending there is not included under the miserliness which is forbidden. However, this too is called miserliness in its general sense. Although, this kind of miserliness is not haraam, it is still a detestable trait.
The punishment mentioned in this verse for miserliness: “They will be made to wear on their necks as collars that which they were miserly with on the Day of Qiyaamah” has been explained by Rasulullah (sallallahu ‘alaihi wasallam) in a hadeeth reported by Sayyiduna Abu Hurairah (radhiyallahu ‘anhu), “Anyone whom Allah Ta‘ala has blessed with wealth but he did not pay its zakaat, it (i.e. the wealth) will come to him on the Day of Qiyaamah in the form of a deadly snake which has two spots and will be shackled around his neck. It will then hold both his jaws and say, ‘I am your wealth, I am your treasure.’ Thereafter Rasulullah (sallallahu ‘alaihi wasallam) recited this verse.” (Saheeh Bukhaari #1403)
(Extracted from Ma‘aariful Quraan vol. 2, pg. 252)
Thereafter, Allah Ta‘ala explains that whatever is in the heavens and the earth will eventually have no owners when everyone will be destroyed before Qiyaamah. The only Being that will remain will be Allah Ta‘ala, and He will thus be the Sole Owner of everything. So, when this is the case, why are they being miserly and not spending that which is from Allah Ta‘ala, which is only temporarily in their ownership and will once again be only His? Only that which they have spent in Allah Ta‘ala’s path will benefit them in the Hereafter.