I work in a call center for night shifts. My salary is very hard earned. Now govt is deducting income tax from salaries. It goes upto 1000 rs or more also. For me even 100 rs is very important as i am not very rich. So now in my company other people show LIC policies, loan accounts ETC to escape the govt income tax. but all these things are haraam as it involves interest. There is one last way which is I am using to escape the income tax and that is I have to submit dummy rent receipts to the company showing that i am living on a rented house and i have to pay monthly rent of say 8000 rs. (however just to let you know that i have my own house and dont live on rented house this is just a dummy rent receipt i have to show) i have to fill up these dummy rent receipt and submit to finace dept every month. But if i dont do this the income tax will be deducted say up 2000 rs also from my monthly salary which is a big loss from my hard earned money So can you please tell me i am doing right?
Ref. No. 37 / 1032
In the name of Allah the most Gracious the most Merciful
The answer to your question is hereunder:
To abstain from paying income tax where there is a great deal of injustice, you may continue using the same way. Moreover being a Muslim you have to avoid any immoral action and any clear violation of the law of the country. Your intention must not be to deceive others.
And Allah knows best
Darul Uloom Waqf Deoband
This answer was collected from the official website of Darul Uloom Deoband Waqf. The institution is based in India and the answers are provided in accordance to the Hanafi Fiqh.