• Miscellaneous >> Halal & Haram

    Question ID: 27567Country: India

    Title: I am govt. employee.Can i deposit my monthly provident fund subscription to that much of an amount so that i get maximmum Income tax rebate.I am bound to earn more interest on such deposited amount.Even after getting some rebate on income tax by depositing maximum GP-fund subscription,Still If i have to pay income tax ,Can i pay income tax from interest earned on depositing maximum GP FUND subscription?

    Question: Aslamu alai kum I am govt. employee.Can i deposit my monthly provident fund subscription to that much of an amount so that i get maximmum Income tax rebate.I am bound to earn more interest on such deposited amount.Even after getting some rebate on income tax by depositing maximum GP-fund subscription,Still If i have to pay income tax ,Can i pay income tax from interest earned on depositing maximum GP FUND subscription?

    Answer ID: 27567

    Bismillah hir-Rahman nir-Rahim !

    (Fatwa: 1828/1320/L=1431)

     

    It is allowable to pay income tax with interest money.

    كما هو حكم المال الخبيث الذى حصل بسبيل الكسب الخبيث .

    It is not right to get extra PF deducted willingly beside the compulsory PF amount, with the intention of paying income tax with the amount. One will have the sin of doing interest based dealing.

    Allah (Subhana Wa Ta'ala) knows Best

    Darul Ifta,

    Darul Uloom Deoband, India