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Kya LIC etc mein invest karke income tax katne se bach sakte hain? Maturity par interest halal hoga?

Answered as per Hanafi Fiqh by Darulifta-Deoband.com
Assalamu alaikum.my question is that I am a government servant and government deduct income tax from income if we do not save. to avoid income tax we have to do saving in LIC etc. kya income tax katne se bachne ke liye LIC etc post office saving, personnel provident fund etc mein invest kar sakte hain ya nahi, aur policy maturity par interest halal hoga ya nahi.

Answer

(Fatwa: 334/306=D/1430)

Interest is haram in any case whether received from life insurance or post office saving. Life insurance contains gambling along with interest, both have been regarded haram by the Quran. As far as life insurance to save income tax is concerned, if you lose so much wealth in income tax and can save it by little amount of life insurance, then it is allowable to adopt the less harmful to avoid the more harmful. But, you should do istighfar that Allah may forgive this sin to which you are forced by situation. However, the additional amount will not be lawful to use, you will have to give it in charity without an intention of reward.

(2) The additional amount received with the fund which is compulsorily deducted from salary is not interest, therefore receiving and using the amount is lawful. But, if the fund is deducted with oneÂ’s choice, then the additional amount will be interest and it must be given in charity.

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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