As part of my salary package, the company offered me a car allowance, pension and medical aid. Withregards to the car allowance, I have to purchase and the asset belongs to me. I took the option for tax benefit. However, I pay interest and am concerned. Should I pay off the capital if I have funds or allow the term to run. With regards to the pension & medicl aid this is compulsory.
It is not permissible to incur an interest bearing transaction to reduce tax payments.
and Allah Ta’ala Knows Best
Mufti Ebrahim Desai
FATWA DEPT.