Title: In India Income Tax is deducted monthly from our monthly salary, So can we take any LIC/Mediclaim policy or investment scheme without the intention of taking interest from the corresponding policy & having the intention to pay the received interest to poor (means having the intention to save salary from IT deduction & not to take interest for self use)?

Question: Assalamualikum, In India Income Tax is deducted monthly from our monthly salary, So can we take any LIC/Mediclaim policy or investment scheme without the intention of taking interest from the corresponding policy & having the intention to pay the received interest to poor (means having the intention to save salary from IT deduction & not to take interest for self use)??? Kindly acknowledge. Jazakallahu khairan ...

Answer ID: 7493Posted on: Sep 1, 2020

Bismillah hir-Rahman nir-Rahim !

(Fatwa: 1476/1391=D/1429)

It is not allowed to take part in interest-based transaction with the intention of taking interest and distributing it among the poor. You should write in detail what the investment scheme is all about. Life Insurance, mediclaim polices consist of interest and gambling which are unlawful and haram. You should explain what means you want to adopt to save income tax.