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Calculate Zakat on gross or net salary? Can housing loan save halal earnings & provide asset?

Answered as per Hanafi Fiqh by Darulifta-Deoband.com
Assalamualaikum, Janab I am a salaried person and a substantial amount from my salary is deducted as taxes. I have two questions: 1. At the time of calculating Zakat should I consider my gross salary i.e. before deductions or the net in hand after deductions. 2. In order to avail tax exemption can I take a housing loan as that will not only save my halal earnings but also be helpful in owning an asset. Please guide.. Jazak Allah

Answer

(Fatwa: 2140/B=1740/tb=1431)

(1) As much salary you receive (after deduction), only that much will be taken into consideration. 
(2) It is permissible to avail housing loan in order to save one’s hard-earned income from un-Islamic taxation.

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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