Mufti Online — Madrasah Ta'leemuddeen

Can we buy home loan to avoid income tax?

Published as Taking a home loan to avoid tax

· 5 Rabiʻ II 1435 AH1 min readEnglish

Question

Can we buy home loan to avoid income tax? Income tax is also indirect interest. Instead of paying it to the Government can we pay to bank as interest? or do we have an alternative to avoid it which benefits us?

Answer

If the loan is with interest then obviously it will be haraam.

And Allah Ta'ala (الله تعالى) knows best.

Answered by
Mufti Ebrahim Salejee (Isipingo Beach)
View original Compare with other Darul Iftas
Questions about this ruling, answered only from the archive with sources.

Where scholars differ, it’s safer to take the more cautious view.

Fatawa SA is an independent, read-only index of fatawa already published by Mufti Online — Madrasah Ta'leemuddeen. It is not a fatwa service. For your own situation, please ask a Mufti. Report an issue

For corrections or mistakes, please email us at fatawasa786@gmail.com.

Source: Mufti Online — Madrasah Ta'leemuddeen — https://muftionline.co.za/node/5549
Fatawa SA: https://fatawa.co.za/fatwa/muftionline-5549

People also ask

Is it permissible to avoid paying tax?

“According to the SARS (South African Revenue Service) website, the estate duty is 20% of an estate exceeding R3.5 million. If the estate is R30 million or more, the estate duty will be 25%.”

Ask Imaam · 137 fatawa from 7 Darul Iftas on this

What the Darul Iftas say
Is taking a home loan (bond) permissible?

“Mufti Ebrahim Desai Sahib does not know anything about William John HV Bond and has not approved it. GIFS is an independent organization and not related to the Darul Iftaa.”

Ask Imaam · 109 fatawa from 6 Darul Iftas on this

What the Darul Iftas say

Related fatawa