As Salamu alaykum wa Rahmatullahi wa Barakatahu, I am an Engineer working in MNC company. I wanted to know how to save TAX, as the amount of TAX that is deducted is increasing day by day. This is a concern of many professionals, and i didnt invest in Life Insurance or any other thing as its not jayaz. Please help me and other muslims as well who as struct here and much money of muslims are wasted in TAX. ALLAH HAFIZ
Answer
(Fatwa: 1747/1644=D/1429)
The government levies the tax amount for carrying out administrative affairs. For saving tax one should adopt a way which is legal. If you have any interest amount left in you account, then you can pay tax with it. But for this purpose (to pay tax), it is unlawful to deliberately deposit amount and then take interest or do life insurance, for these are interest-based dealings which Muslims must shun from.
Allah (Subhana Wa Ta’ala) knows Best
Darul Ifta,
Darul Uloom Deoband