Darul Iftaa Mahmudiyyah

Is loan with interest to construct a house, just to save the Income Tax is Halal ?

· 23 Safar 1425 AH1 min readFatwa 11358English

Question

I am a Radiologist, and my earnings are in White money, just to save Income Tax, as I am in a Bracket of 35% [ yearly tax payable is > 7.2lakhs], can I take a loan with interest to construct a house . Other wise I my be paying around Indian Rs 60,000 per month. Please advise me as this is a huge amount and hard earned money . Dr Saleem

Answer

It is not permissible to take an interest bearing loan in order to decrease the income tax amount.

and Allah Ta'ala Knows Best

Mufti Ebrahim Desai

Answered by
Mufti Ebrahim Desai
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Source: Darul Iftaa Mahmudiyyah — https://askimam.org/public/question_detail/11358
Fatawa SA: https://fatawa.co.za/fatwa/askimam-11358

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