• Miscellaneous >> Halal & Haram

    Question ID: 13439Country: India

    Title: While changing company,if anybody is given two options regarding Provident Fund 1) Transfer the amount to next company , which will be taken as the initial amount for the next company and will undergo compound interest rate as usual. 2) To take out the entire amount, but for this option one has to pay huge income tax. Please let me know whether it is allowed to transfer the Provident Fund amount to next company under this situation.

    Question: While changing company,if anybody is given two options regarding Provident Fund 1) Transfer the amount to next company , which will be taken as the initial amount for the next company and will undergo compound interest rate as usual. 2) To take out the entire amount, but for this option one has to pay huge income tax. Please let me know whether it is allowed to transfer the Provident Fund amount to next company under this situation.

    Answer ID: 13439

    Bismillah hir-Rahman nir-Rahim !

    (Fatwa: 1126/953=D/1430)

     

    It is unlawful for one to deposit amount on interest in other company. One will be liable for the sin of transacting interest and the sin will continue till end due to involving in interest based dealing. It will deprive the wealth of barakah. The additional amount received at the end, will be interest and using the same will be haram. Therefore, you should not transfer the amount to the next company.

    (2) Instead, you should choose the second option i.e. withdraw the amount and invest it in a lawful scheme. You will have to pay the income tax in any way, if not today, tomorrow; therefore it will be of no use to worry about the same.

    Allah (Subhana Wa Ta'ala) knows Best

    Darul Ifta,

    Darul Uloom Deoband, India