• Transactions & Dealings >> Interest & Insurance

    Question ID: 45404Country: India

    Title: Usage of Money from NSC Savings

    Question: I am from Chennai and paying an Income Tax of around 80-90 thousand per year. Can I use the interest incurred from National Saving Certificate (NSC) to pay income tax? Also, since I have not taken any home loan (as it involves interest), so I am ending in paying huge taxes. Is it right to take home loan. Kindly clarify.

    Answer ID: 45404

    Bismillah hir-Rahman nir-Rahim !

    (Fatwa: 861/797/N=1434) (1) As per the elder Muftis, income tax is a non-wajib and unjust taxation. Hence you may pay your income tax from interest amount received from the government, it is lawful. (2) In taking home loan from bank you would deal in interest which is severely unlawful, haram in Shariah as well as cause of curse. It is not allowed except in the state of exigent compulsion. And here the condition of exigent compulsion is not found; hence you would not be allowed to take home loan from the bank. You should lessen your expenses and save some amount and buy any suitable residential house later on.

    Allah (Subhana Wa Ta'ala) knows Best

    Darul Ifta,

    Darul Uloom Deoband, India