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Must I declare income from part-time employer on my tax return?

Answered as per Hanafi Fiqh by Darulifta-Deoband.com
I am working with two employers (one full time and one part time). My full time employer deducts income tax on my income as per government rules but my second employer does not deduct the income tax and deposit the total income in my bank account. Now with my total income (income from full time employer plus from part time employer), there is some tax payable to government at the end of year. My questions are: (1) When submitting my annual income tax declaration (required by government of Pakistan), should I declare the amount received from my part time employer as my income? Will it be considered as lying if I do not declare this as my income? (2) Can I ask my part time employer to transfer my income to a bank account which belongs to my father? (As he is retired now so he will be paying a lesser amount of tax as compared to what I am currently paying). (3) In point 2, will my father be the owner of that amount? Do I still need to show this in my income tax statement?

Answer

(Fatwa: 1894/1329/L=1432)

(1) In your earnings the income of part time job is also included. If Pakistan government asks you to present complete detail of your all income then in such case it shall be lie not to include the income of part time job.
(2 & 3) If you transfer the earning of part time job into your father’s account and you do not have any intention of making him its owner then you shall be the owner of this money and it shall be necessary to produce the detail of this income as well. However if you say in your detail that you have only so and so rupees in your account and transfer the earning of part time job into your father’s account then it shall be allowable and you won’t get the sin of telling a lie.

Allah (Subhana Wa Ta’ala) 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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