IslamQA

Usage of Money from NSC Savings

Answered according to Hanafi Fiqh by Darulifta-Deoband.com
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.

بسم الله الرحمن الرحيم

(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 knows Best!

Darul Ifta,
Darul Uloom Deoband

This answer was collected from the official ifta website of Darul Uloom Deoband in India.

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