I work in a private company and my annual package includes components like Medical, House Rent Allowance etc. I can save Income tax on these components if i produce bills of Medicals and House Rent. Some times we produce false bills which is for more amount than what we actually spend for Medicals or House rent in order to save tax, For Example: I pay House Rent of Rs 2000/- per month but i can save tax on House Rent upto Rs 5000/- per month, so i submit a false reciept of Rs 5000/- per month to save tax on the full amount for which i am entitled. Is this allowed ?
Answer:
(Fatwa: 1134/657/D=1432)
It is not right to produce fake and bogus bill in order to save income tax. It includes deception and fabrication and both are major sins; hence you should produce only genuine bills.
Allah (Subhana Wa Ta’ala) knows Best
Darul Ifta,
Darul Uloom Deoband