Question:

I have a job & employed at firm in India Mumbai, i would like to know about Tax saving for Indian employees.

          •        Every year after working hard a good amount of our salary is deducted in the name of Tax. And to save or minimize this deduction we are to produce some documents; Example (HRA) Home Rent Allowance, Mediclaim, Insurance, Travel Allowance, Car Hire, Life Insurance, National Saving certificate, Fixed Deposits etc...

          •        Until now being unaware & a complete idiotic Jaahil of Islamic Teachings i been doing the following:


For Medicalim i have submitted my families genuine medical expenses, my sisters handicap certificate (which helps me save some tax).


For HRA i have been making a fake rent receipt. its the approx the same amount of my families monthly house expense. and this is known & widely accepted by all employees & employers. 


For Travel Allowance i make fake air travel tickets. as i cannot claim my local bus/train travel claims.


Alhamdulillah i have been away form Insurance/Policies/Fixed Deposits etc... as these buggers are trying real hard to somehow introduce INSURANCE in our lives. Can i show a fake document to save this money? Also what is national saving certificate (INDIA), is it permissible?


For care hire (this is a new addition for this year). where i can show a car hire & save some tax. Im planing to show a document of car hire from very good friend's car.

 

          •        Im in serious doubt that my actions are not right but how do i make the saving coz the amount deducted is huge? is there a right way to do so? if Yes, please suggest.


I know im pushing hard to some how make & convince the wrongs are right; please pray that i understand, accept & follow the light of ISLAM (Quran & Ahaadees).



Please guide me in the light of Quran & Ahaadees.



Answer:

In the Name of Allah, the Most Gracious, the Most Merciful.

As-salāmu alaykum wa-rahmatullāhi wa-barakātuh.

 

Exorbitant taxation or income tax is indeed an oppression. In avoiding the oppression, it is not permissible to involve oneself in blatant sins such as lies and deceit.

Accordingly, it is not permissible for you to produce fake receipts and fake travel tickets to avoid taxation. Furthermore, such actions may lead you to inconvenience and be prosecuted by law which does not behove the integrity of a Muslim.[1]

You may exercise many other legal loopholes that will decrease the amount of taxation. Submitting your family’s genuine medical expenses and the sort are some practices that may be used.[2]

And Allah Ta’āla Knows Best

AbdulMannan Nizami

Student Darul Iftaa
Chicago, IL, USA

Checked and Approved by,
Mufti Ebrahim Desai.

www.daruliftaa.net



[1] [فتاوی محمودیة، کتاب الاجارة، باب الاجارة الصحیحة، ج۲۳، ص۳۵۰، فاروقیة]

 

[کتاب الفتاوی، کتاب البیوع، سود کے احکام، ج۵، ص۳۱۸، زمزم پبلشرز]

 

[فتاوی دینیہ، کتاب البیوع، انکم تیکس، ج٤، ص١٩٦، جامعة حسینیہ راندیر]

 

[فتاوی عثمانی، کتاب الزکاة، ج۲، ص٦٩، مکتبة معارف القران]

 

[احسن الفتاوی، کتاب البیوع، باب الربا والقمار، ج۷، ص۲۱، سعید]

[2] [فتاوی مفتی محمود، کتاب الحظر والاباحة، ج۱۱، ص۳۸۵، جمعیة پبلیکیشنز]

 

[فتاوی دینیہ، کتاب البیوع، انکم تیکس، ج٤، ص١٩۳، جامعة حسینیہ راندیر]

 

المصدر السابق

KHARWASTAN

Join Our Mailing List (B.E.E.P) - Business Educational Empowerment Programme