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Can we pay the TDS from the interest money?

Answered according to Hanafi Fiqh by Askimam.org
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I am purchasing a property in India,and for the registration i am paying from my halal money.

Now the government has imposed TDS on the Seller from whom we are buying, He has to  pay the TDS,but he is not willing to pay.

He is asking us to pay,otherwise he will sell to others.

Can we pay the TDS from the interst money from my savings account.As he is not willing.

Answer

In the Name of Allah, the Most Gracious, the Most Merciful.

As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh

Muslim citizens residing in non-Muslim countries should abide by those rules and regulations of their countries which are non-un-Islamic. The State is tasked to protect and preserve the citizens of the State. The citizens of the State enjoy the public infrastructure, social, defensive and public welfare benefits of the State. The State offers these benefits through the taxes and fees paid by the citizens. The State and the citizens are governed by a unified constitution which regulates the duties of both State and citizen alike. Therefore as Muslims we should abide by the rules and regulations of the State which are non-un-Islamic.

 

With regards to your specific question, you state that you wish to purchase a property and the seller refuses to pay the TDS Tax imposed by the government. You also wish to pay the TDS Tax from your interest money accrued to your savings account. Herewith follows the response to your question:

 

Tax Deducted at Source (TDS) is a means of collecting income tax in India, governed under the Indian Income Tax Act of 1961. It is managed by the Central Board for Direct Taxes (CBDT) and is part of the Department of Revenue managed by The Indian Revenue Service (IRS).

 

Based on our research and the provisions of Section 194IA of the Indian Income Tax Act, the buyer of the property is required to deduct Tax (TDS) and deposit same with the Government. The seller is not required to pay the tax. Kindly refer to the below references.[1]

 

The current day Jurists have stated that it is permissible for one to pay exorbitant and unfair taxes with interest funds in general. However this is a matter that should be addressed by the local Ulema, Mufti’s and accounting academia.

 

One may also pay government taxes with interest funds accrued from government accounts such as government retail bonds and State deposit accounts. Moreover you may consult with a local accountant to assist you in devising a legitimate financial structure to evade the tax legally.

 

A Muslim should always preserve his dignity and respect and abstain from illegal and fraudulent actions which may bring him into disrepute with the State.

 

And Allah Ta’āla Knows Best

 

Ismail Desai,

Darul Iftaa

 

Checked and Approved,

Mufti Ebrahim Desai.

 

 

 

 

 

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