Home » Hanafi Fiqh » Muftionline.co.za » Taking a home loan to avoid tax
Q: Can we buy home loan to avoid income tax? Income tax is also indirect interest. Instead of paying it to the Government can we pay to bank as interest? or do we have an alternative to avoid it which benefits us?
A: If the loan is with interest then obviously it will be haraam.
And Allah Ta’ala (الله تعالى) knows best.
Answered by:
Mufti Ebrahim Salejee (Isipingo Beach)
This answer was collected from MuftiOnline.co.za, where the questions have been answered by Mufti Zakaria Makada (Hafizahullah), who is currently a senior lecturer in the science of Hadith and Fiqh at Madrasah Ta’leemuddeen, Isipingo Beach, South Africa.
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