This article only discusses tax saving through investments; it doesn't discuss about other tax saving options. There are ways to reduce taxes through deductions and its discussed another article:
Halal Tax Saving
Let me get straight to the point, I feel THERE IS NO HALAL TAX SAVING INVESTMENT IN INDIA.
You can continue reading further to know the reasons for the same.
I am not even going into the stupid arguments that interest is allowed, small percentages are fine, interest in not usury, riba stands only for usury and not interest. Allah has given us brains to think and the Quran/ Sunna as a guide; every person is capable of investigating and finding out what is allowed and what is not.
Interest Based Investments
- PPF (Public Provident Fund )
- NSC/ NSS (National Saving Scheme/ Certificate)
- KVP (Kisan Vikas Patra)
- SCSS (Senior Citizens Saving Scheme)
- FD (Fixed Deposits)
- TD (Post Office Time Deposit)
- Infrastructure Bonds
Insurance
Pure Life Assurance and Medical Insurance (for self and parents) maybe fine and is a good tax deduction; but it is not literally an investment. You do not get any returns directly.
Most of the insurance schemes in India are investment based and none are halal. The following popular ones have Interest components:
- Guaranteed
- Highest NAV
- Endowment
- Balanced
- Any of the Jeevan ****** from LIC
Is Life Insurance Halal in India Is LIC insurance policy halal or haram
ULIP (Unit Linked Insurance Plan) These are somewhat similar to Mutual Funds and they can have Debt as well as Equity components. The Debt ones are obviously not allowed as that falls under Interest. The Equity one is also not allowed because of the following reason:
- You have no idea about which Stocks the insurance company invests the ULIP funds as they do not reveal where they have invested.
- Rest of the points are same as ELSS below.
Pension Schemes
Pension Schemes can take various forms and are usually from Government, Insurance Companies and Mutual Funds. However, all these are heavily into Interest based investing and hence not allowed.
- NPS (New Pension Scheme)
- ULPP (Unit Linked Pension Plan)
- Pension Fund from Insurances
- Pension Fund from Mutual Funds
ELSS (Equity Linked Savings Scheme)
Probably the most popular among Muslims as a non-interest based investment. Unfortunately this is not halal either. They do the following haram investments
- Although they are equity based, some portion (about 10-20%) will be invested in Debt instruments.
- Usually they invest a significant portion in shares of Financial Instituitions like Banks, NBFC, etc.
- There is nothing stopping them from investing in completely haram sectors like Alcohol, Sugar, Media & Entertainment, Tobacco.
- For capital intensive sectors like Infrastructure, Power, Machinery, Oil & Gas each company has to be evaluated carefully as many are heavily into debt all the time (i.e. paying huge amount of interests)
- Cash rich companies like IT, PSU's have huge amounts of idle cash often invested in Banks/ Bonds and other short-term investments. This pays them a good amount of interest income.
Even if you ignore the last 2 points; just go through the Investment Portfolio of any ELSS Mutual Fund and you will see that nearly 30%-50% comes under haram industries.
Home Loans
If you have taken a Home loan from a Bank/ NBFC, you are surely paying interest and by Shariaah both the interest payer and receiver are equally sinful. The only way this can be made halal for tax purposes is that you take a loan from your father/ mother or some close relative with 0% interest and just show to the government that you are paying them interest.
Compulsory Investments
The following are Tax Saving Investments for salaried employees and are usually compulsory; so you do end up forcefully investing in them.
- EPF (Employee Provident Fund)
- Superannuation.
Conclusion
So what do you do? It's simple you pay the Tax. What else can you do? It might be haram to pay such high levels of tax, since there is no basis in religion for such high taxes and much of the money doesn't get used up in the right way.
However, to prevent one haram that is forced upon you, it is not right to willfully commit another haram by investing in non-Shariaah way. Allah knows best.
And don't forget to read other ways of tax saving: Halal Tax Saving
And don't forget to read other ways of tax saving: Halal Tax Saving
As-salam Alikum W/w, Fazeel. Thanks for the time to write the lengthy information from heart. So you conclude that it is better to pay tax than investing in other interest based investment?
ReplyDeleteWhat is the idea that save our tax money by making investment in tax saving schemes and get what exactly you invested and throw-off the interest accumulated. This will definately return my own pure halal money to me, if I'm investing in infrastructure develoment, etc.
I mean to say that if I start investing Rs. 20,000 per annum and after lockin-period, I retrive my pure money that amounts to 1,00,000.00 (Rs. 20,000 x 5 years) minus what ever the interest accumulated throw-away......in this mean, I can save some small tax.
Have you came across islamitijara, they tell where to invest money in halal way. Can you please do further research with islamitijara or any people who says halal investment, etc.
May Allah be please with you and guide you and us in leading life in halal and harmonious way. Aameen - Imdad
Walaykum assalam,
DeleteI had neglected this blog because of my lethargy and only now saw that it is actually being used.
In reply to your question, I also had similar thoughts. But here is what I figured out:
1. Paying taxes is not in your control. It is something enforced on you. You can even be tried in court for not paying. Hence, it's a kind of an oppression on you by the rulers. I hope Allah will not question me anything about taxes as is was forced and couldn't find any 100% clear escape route.
2. However, investing in haram even without taking the benefits that come out of that haram is something completely under your control. You are actively involved in it and can't cancel an oppression with haram.
These are purely my views on it.
I believe you are asking about http://www.islamitijara.com/
Based on a look at its homepage and its portfolio, it has stocks that are much better and relatively free from direct impurities. They do have stocks on which I have doubts (specifically some companies that have huge loans and pay a lot of interest and some who have loads of surplus cash that they have invested.)
The site needs registration and all so will explore sometime later insha-allah.
i agree with Imdad, are we talking about "tax saving" or "returns". If its the first then its halal, but the second one is what is forbidden. its just my opinion. as far as i see. Please rectify if its wrong...!!!
ReplyDeleteRgds
ahmed
This comment has been removed by the author.
ReplyDeleteHi is this investment ok?
ReplyDeletehttp://www.wealthcity.in/services/SAVE-TAX-TAX-SAVING-THE-SHARIAH-WAY-INVEST-IN-A-ISLAMIC-WAY-WEALTHCITY-BAJAJALLIANZ.html
Assalam Walaykum, I liked this blog coming straight from heart. I am an IT and constantly researching from last 6 years on making my investment halal.
ReplyDeleteFirst thing. no matter what we think and what arguments we bring to prove it, no mater even the entire world agrees with it, no matter how many so called fatwa raised for personal gain, ALLAH's LAW REMAINS SAME and his JAHANNUM is bigger enough to accommodate those who rejects his AYATs (but remebber ALLAH is most merciful).
Why we dont want haram money?
1. Allah forbids it
2. personally I am not a big fan of taking showers of fire in Jahannum for eternity for my afterlife
3. We dont want to raise our children with haram money and in the home that belongs to bank for next 20 years
4. The Zakat of haram money is rejected, you are not suppose to calculate haram money for Zakat because Allah does not accept it
5. Hajj cannot be done by this money, its rejected
6. Sadka, Khairat or fi Sabilillah is not accepted by Allah from haram money
How can we expect barkaah in our chidlren, wife and family members, who had been fed, clothed and raised from haram?
How can we ignore the fact that the blood that flows in their veins, the muscles they developed, the beauty they have, all came from haram money?
WHAT TO DO?
Lets accept the fact that in india there are not too many options to invest in halal. But yet there are ways.
I agree with Fazeel and Imdad both and have came up with a good investment solution.
1. While investing in tax saving (haram) bonds, calculate the interest they are likely to give and give it to some needy on the same day you invest, THIS SAVES TAX
2. Never put money in FD, it going to reduce it if you know about inflation and tax on FD
3. Part your money into 4 equal parts
A. Saving B. Contingency C. Invest in Good Mutual Funds/Gold D. Invest in Mid Caps Fund
4. Once you will reach the goal for savings (12 months of your expense) you will be able to put more in other parts
5. Now, once you have enough in B. and C., you can buy a land
6. Down the years you will be able to buy 5-6 plots from that you can sell 1-2 to get enough money to build the home on 1-2 plots
7. This way you will end up having home, decent investment, contingency funds and savings.
As far as investment in concern, there are some good MidCAP as well a Shariah funds you can look for:
TATA ETHICAL FUND
Goldman Sachs CNX Nifty Shariah BeES
For non shariah funds:
BIRLA SunLife FrontLine (0% in debt but 20% in baking), so you can take out 20% of profit from banking allocation
NEVER INVEST IN LIQUID, DEBT OR BANKING/FINANCE FUNDS.
I have done lots of research by the ilm and taufiq given by Allah, so if anyone wants any help regarding investment strategy or funds (not specific stocks), please do ask me and I will try, by Allah's guidance and mercy, to help my brother and sisters.
MAY ALLAH, THE MOST MERCIFUL AND THE MOST GRACIOUS, GUIDE US AND PROTECT US
Assalamu Alaikum
DeleteKindly give some best mutual funds to invest, whihc should be halal.
usmansheriff@rediffmail.com
Dear SINAN SUHEL bhai,
DeleteAssalaamu Alaikum. Through my employer, I've opted for NPS, Tier-I scheme. It is National Pension System which is Promoted/Monitored by the Government of India and Regulated by Pension Fund Regulatory & Development Authority of India (PFRDA). I've opted for Funds investment in Asset class G (Government Securities), thinking that it should be halal as it is not an FD like investment.
Is this an halal investment?
Please let me know. JazzakAllah khair.
Thanks and Regards,
Salim
Dear SINAN SUHEL bhai,
DeletePlease guide me. My email ID is salim.amanullah@gmail.com
Thanks and Regards,
Salim
Assalamu alaikum ASalim,
DeleteSince you mentioned that the NPS invests in Government Securities, it is 100% interest based return. Government Securities means loan that government takes and for that loan government pays back interest to investors.
Assalam wa alaikum-
DeleteDear brother, any investment that pays you regular, without fear of loss on your side, with same rate regardless of profit or loss on other side is haram.
Now judge yourself, NPS, GS, you provide some amount and it increase your money at consistent rate. There wont be any fear of loss for you. even if the economy goes in recession, you still get your money increase by certain rate and even though the economy booms you still get the same rate.
Secondly, as Fazeel mentioned, its the loan govt. takes from you and pays you interest. Its not FD but not different from FD. Just the payment rules, tenure and name is different.
Please do write to us if you have any questions,
And always remember, Allah knows everything, sees everything.
Dear brother, Please dont waste your hard earned halal money by mixing it with interest.
may Allah guide me you and all our brothers and sisters.
WaAlaikum assalaam dear brothers,
DeleteThanks for your reply. First, I'll have to find a way to close my NPS account without loosing the amount Rs6600, which I had invested so far through my employer.
Secondly some of my Muslim friends have opted for two other Asset groups excluding the Asset group G, that I've invested.
1) Asset class E (equity market instruments)
This asset class will be invested in index funds that replicate the portfolio of either BSE Sensitive index or NSE Nifty 50 index. Index Fund Schemes invest in securities in the same weightage comprising of an index.
2) Asset class C (credit risk bearing fixed income instruments) – This asset class contains bonds issued by any entity other than Central and State Government. This asset class will be invested in liquid funds of Mutual Funds, credit rated debt securities. This includes rated bonds/securities of Public Financial Institutions and Public sector companies, rated municipal bodies/infrastructure bonds and bonds of all firms (including PSU/PSE)
I believe they are also 100% Haram. Please correct me if I'm wrong.
Thanks and Regards,
Salim
Assalamualikum..how about investing in Heera group agencies,managed by nowhera Shaikh...which deals with gold,food,water and textile..though their are many fatwas that gold has to be dealed in presence of person..what about investing in remaining products like food,textile and water...jazakallah khair.
DeleteWassalam,
ReplyDeleteas i mentioned, TATA ETHICAL FUND and Goldman Sachs CNX Nifty Shariah BeES are shariah compliant mutual funds. One more is from Taurus, but its performance is not as good as these two.
Also, on thematic funds, you can choose Pharma funds (reliance pharma is good one) and at lesser extend, the FMCG fund.
I really liked this post, i must say keep up the good work. What I would like to ask is as an Indian Muslim what halal investment options do we have that may give us returns instead of our idle money generating nothing being stocked in the banks
ReplyDeleteAssalam alaikum
ReplyDeleteI am fully agree with Fazeel bhai, he is right that there is no investment scheme in India under Islam7c Law.
So it'll bemuch better we pay tax beacause its a govt rule & Allah allow us to follw the rule of country where we live.
Don't worry about the amount you will loss by paying tax it's better then the Fire of Jahannum.
Zazakallahu khair
Assalamualaikum
DeleteI am relieved seeing that many Muslims are there like me having a mindset of investing / saving tax ND also follow Islamic rules of not earning interest nor investing in Haram stocks...
I have myself invested in tata mutual ethical fund as sip ..it's growth is good enough...
However in order to save tax I had started investing in lic ( max life) ..I have already invested 2 lakhs as premium..it is purely equity ND no debt but obviously banking stocks are there
I am wondering what to do now
????
Should I give the extra money earned at end of term to poor ... Is that enough ??
I am giving interest earned in bank accounts to charity already... Can this be treated same ??? Isnt the bank using our money in savings account already for their purpose ?? Maybe all this is a defence mechanism to support my methods...
Allah knows best... My Allah forgive me
Assalam alaikum ,
ReplyDeleteIt is a sad thing that we have to pay tax which is never used and our brothers in syria, afghanistan and any one who is oppressed and poor are forced to live with empty stomachs. May allah find a way and someday provide an apt solution in ways we cant imagine now. I just jot a job and realized that a lot of the money over 5 lakhs was taken in tax. Gosh, this much !!! Anywaz can any of the brother kindly suggest a scheme that will save maximum tax in a halal way for income range of 5-10 lacs per annum. Kindly suggest a perfect solution so that all can benefit from it who don,t really have an idea about tax savings in a halal way.
Mail me and also plz answer here: memymyself4u@gmail.com
Walaikum assalam,
DeleteAm not sure if you read this post: http://halal-investing.blogspot.in/2013/09/halal-tax-saving-without-investments.html
It suggests ways of avoiding tax by deduction. Most of the options mentioned in the post are applicable for you. In my opinion, HRA deduction will be the biggest contributor.
Adding proper link: Halal Tax Saving using Deductions
DeleteDear brothers and sisters. Some one up the chain mentioned that why not use tax saving insurance schemes or other non shariah policies to save tax, but wen returns come to only retain our invested money and give away the extra interest money in charity. The logic given here was that in this way we firstly save on tax n secondly also do not become interest takers/consumers. I also thought of the same thing, but as I thought more about it, I began to realize that even though our intention is pure n we fear rightfully that we Shud not be takers of interest n we decide to willingly give away the extra interest money n only retain out invested amount, I think we will still be committing a sin, n that sin is that we are involving ourselves in a haraam business n we contribute in some way however small in keeping a haraam business working. Let me give a small hypothetical example.
ReplyDeleteScenario 1- group 1. If an insurance company had only 100 people as it's customers in a town. If all took insurance with intention of giving away interest in charity, then the company wud run n flourish even though all 100 didn't use the interest. So indirectly all 100 people along with company played a part in keeping a haraam business venture alive. Scenario2- group 2. Now if all 100 people refused to buy any insurance from the haram business company, the company wud be forced to shut down. Here 100 people would earn the sawab to doing an act that ended a forbidden business practice. Now ask yourself which scenario n group u want to be from? I am not an aalim. This is what I felt. When Allah forbids us from something we Shud refrain from it n not find practical excuses to justify becoming a part - hhowever small - of a forbidden thing. Allah knows best.
AssalamoAlaikum.. this is the best answers i found so far.. ur example is very practical . JazakAllah khair
DeleteCompletely agree with above comment, don't support interest based system by your own. Neither pay tax nor receive. If you don't pay tax to govts then they will harm you, in this situation whatever you are paying to govt in form of tax it will be considered as a Sadka, I read it somewhere, I think in Fazaile Sadakat. Maulana Zakariya (RA) din't mention govt he has mentioned some local goons and if you dont pay them hafta then they might harm you, then it will considered as Sadka.
ReplyDeletehttps://www.facebook.com/1434379330139731/photos/a.1434424880135176.1073741828.1434379330139731/1576681865909476/?type=1
ReplyDeleteMajority of Islamic Investment plans are not Halal, for details pls click the following link:
ReplyDeletehttps://www.facebook.com/1434379330139731/photos/a.1434424880135176.1073741828.1434379330139731/1576681865909476/?type=1
Nice insight into Halal Investing. I've also written a post recently on Halal Investing options in Canada i.e. http://financialadviceme.blogspot.ca/2015/01/investment-options-for-muslims-in-canada.html .
ReplyDeleteJazakallah...
ReplyDeleteThe three Shariah Complaint Mutual Funds as I know is:
1) TATA ETHICAL
2) TAURUS ETHICAL
3) GS SHARIAH BEES
@SINAN SUHEL Thanks for the info about thematic funds. Are they purely halal ?
Assalam brother. The ethical mutual funds are halal. But I like TATA most.
DeleteAlso you can buy individual stocks that are shariah compliant.
DONTS FOR STOCK INVESTMENTS
Don't carried out by services that offers shariah stocks tips etc. they are there for business and may misguide you.
Don't be overtaken by greed.
Don't do day trading or short term trading.
Don't buy overvalued stocks at all.Check out hadiths related to trade and you will understand.
Only buy undervalued shariah compliant stocks. Till you get your price, put your money in gold and wait. Like GOLD BEES stock/ETF.
THE ONLY TRUE CURRENCY IN THE WORLD IS GOLD.
Allah knows the best. May Allah guide all of us on path of halal.
Remember, THE PATH TO JANNAH CANNOT BE CARVED ON HARAM.
If you need any more info, I will help you. I have done enough research to help my brothers. My reward is with Allah. You can post comment here or mail me on sinanbandi@gmail.com
Disclaimer: I am just a regular mobile enterprise architect and not a finance advisory professional. I was not knowing about haram/halal investment until one day I read it. When I realize it after few months of research, To get rid of haram money I took loss of more than 20 lacs because I realize they are more like dirt AND MY 100% GUARANTED PATH TO DESTRUCTION.
Today I have 0 debt. 100% halal.
Neither I run any paid service nor intent to. I am also not bound to reply all queries, but try to do best as Allah wish.
Walaikum Assalam
Delete@Sinan, Gold metal is fine, but Gold ETF and BEES has severe issues.
Inshallah, will cover that in another post related to Gold.
I have added article on Shariah Mutual Fund
DeleteAlso an article on Gold
Your opinion on I Monetary Advisory (imonetaryadvisory.com) and Injaz International (injazinternational.in) would be extremely helpful
DeleteVery well explained about tax saving mutual funds ! Recently I have started my investment in mutual funds, but I feel we would require to wait for a long time to get better investment.
ReplyDeleteSalam,
ReplyDeleteIf invest in 100% Equity, and after 5 years, throw away all extra profile only keep my money OR, subtract 30% of profit (30 % invested in banking and finance Sector). will that do?
on their web site for each plan they mentions in portfolio which sector , what % they are investing in.
Assalam, NO it won't do. It will never do. Please take that out of your mind. There's no compromise in Allah's ayat. Either you follow or leave it.
ReplyDeleteThe simple math is that you will never know how much it came from Bank.
Second, in that way you will indirectly support the Riba system.
Thats exactly, by doubtful matters & false logic, how Shaitan lead us to the path of destruction and path of jahannam, robbing you of your precious Iman.
Instead, either invest in shariah mutual funds or invest in direct stocks compliant to shariah. Or better, put some money in hard gold, you will never get it so cheap
if you put in hard gold then you have to pay Zakat on it every year can u confirm how it will be help full.
DeleteAssalam Brother -
DeleteThe question is very broad.
First, if you don't put in gold then you will either invest or keep it as cash.
In both cases you have to pay zakat. There's no escape from zakat, it's mandatory and as important as salat. Refer ayats in Quran.
So now we only left with question is whether to invest in gold or not.
Gold is currency, not investment, in Islam and it's the only asset that carries it's own value and withstand the inflation.
Cash will generate the interest (utterly haram) and loose value by time while gold will not.
Study of the subject of paper currency vs gold from islam point of view is very deep that unfortunately I can't cover here.
But gold or no gold, we have to pay zakat,except we spend the money or buy non zakatable asset like home you live.
Assalamualaikum,
ReplyDeleteWhile browsing I have come across paying rent to parents if the house you are living is owned by your parents. But that will be taxable for the parents. If your parents are dependent and they don't have any source of income then there is no tax for that amount to you or your family.
Wa-alikum Salam.
DeleteI attended a session given by a CA expertise who shared what are the loop-holes in our tax saving schemes. As we give allowances to wife or parents, an also mostly stay in house registered in their name, it was clearly suggested by that auditor that you can pay house rent to parents and adjust in the tax. In my opinion, I was advised by this term in my house "aapna jaan, aapna maal ki hifazat karna" which we do supplicate in dua's.
In my opinion also, it can be worked, but be sure you have PAN card of your parents or spouse with whom you are giving the house rent.
With my limited knowledge is my opinion, Allah guide you and us with his best! aamen.
Assalamualaikum, Thank you for the suggestion. I have it already covered here
Deletehttp://halal-investing.blogspot.in/2015/03/halal-tax-saving-by-house-rent-or-hra.html
Link
Wa-alikum Salam, Jazakallahu khair. I didn't notice that, just thought to share my views, which you already have covered.
DeleteBrother, can you have a check with IMA which I have commented earlier. I too don't know much about this, if everything is fine, it will help a lot of us.
DeleteI tried to check but could not find any IMA site in India related to Islamic investment.
Deletecan you ping the links.
http://www.imonetaryadvisory.org/
Deletehttp://imonetaryadvisory.com/
I have wrote about this in one of my earlier comment. What they do is, but gold with our money, make ornament and share profit of gold sale and service charges in making gold ornaments. Seems, a 50:50 profit sharing. They have a well defined system, process, agreement, transparency ( I have to check this).......personally I have logged-in to two accounts to see how it works.
Yes I had checked the sites earlier. But they did not seem like investment sites. First is some charity NGO site and second is gold shop related.
DeleteBoth sites are incomplete and looks like were made in a hurry.
Anyways stay clear of such high return schemes unless you personally know the owner. Most of them are scam in the name of halal investment.
Dear Brothers & Sisters,
ReplyDeleteAssalamualaikum!!
Like most of you, I am also struggling to find some Halal Tax saving Investment options (tax saving instruments available under section 80C) for salaried people that not only offers me Halal returns but the investments are also tax exempted.
I fall in the 30% Tax slab and neither my employer deduct PF at source nor I have taken any such investment/savings plan alternatively. Thus, if I am able to make some Halal tax saving investment of Rs. 1.5 L or more, I can save 45-50 K annually from the taxes that I pay.
After some research, it appears that 'Pure Stock Pension Fund’ – offered by Bajaj Alliance & promoted by wealthCity can be an option. You can also check the following links:
http://articles.economictimes.indiatimes.com/2010-03-11/news/28416924_1_shariah-taqwaa-advisory-nifty-index-fund
http://www.wealthcity.in/services/shariah-tax-savings/
Would be grateful if you can also share your opinions on the same if you have checked / can check the veracity of their claims/portfolio/offering.
I can be also be reached at mudassir.m.khan@gmail.com
Regards,
Mudassir Khan
Walaikumassalaum,
DeleteI have already mentioned above of why ULIP/Pension/Insurance plan are not good since they do not share details of investment. Just claims are not useful.
Further I read the information document of the Pure Stock Fund and it mentioned 40% investment in Government treasury bills (Non-interest bearing). As far as I know T-Bills are inherently interest based.
Wassalam.
Dear Brothers & Sisters,
ReplyDeleteAssalamualaikum!!
Like most of you, I am also struggling to find some Halal Tax saving Investment options (tax saving instruments available under section 80C) for salaried people that not only offers me Halal returns but the investments are also tax exempted.
I fall in the 30% Tax slab and neither my employer deduct PF at source nor I have taken any such investment/savings plan alternatively. Thus, if I am able to make some Halal tax saving investment of Rs. 1.5 L or more, I can save 45-50 K annually from the taxes that I pay.
After some research, it appears that 'Pure Stock Pension Fund’ – offered by Bajaj Alliance & promoted by wealthCity can be an option. You can also check the following links:
http://articles.economictimes.indiatimes.com/2010-03-11/news/28416924_1_shariah-taqwaa-advisory-nifty-index-fund
http://www.wealthcity.in/services/shariah-tax-savings/
Would be grateful if you can also share your opinions on the same if you have checked / can check the veracity of their claims/portfolio/offering.
I can be also be reached at mudassir.m.khan@gmail.com
Regards,
Mudassir Khan
Assalam,
ReplyDeleteWhat about sharriah view on chitty based saving method.?
As salaam brothers,
ReplyDeleteThe difference between halal and haram in investment is so narrow in some of the options that we may tempt to take advantage of unclear methods or sometimes we look for the arguments that support our wishes. I cam across below HADITH that clears on Muslims' action on doubtful matters.
FROM BUKHARI AND MUSLIM:
On the authority of Al-Numan bin Basheer, who said : I heared the messenger of Allah say : "That which is lawful is plain and that which is unlawful is plain and between the two of them are doubtful matters about which not many people know. Thus he who avoids doubtful matters clears himself in regard to his religion and his honor, but he who falls into doubtful matters falls into that which is unlawful, like the shepherd who pastures around a sanctuary, all but grazing therein. Truly every king has a sanctuary, and truly Allah's sanctuary is His prohibitions. Truly in the body there is a morsel of flesh which, if it be whole, all the body is whole and which, if it be diseased, all of it is diseased. Truly it is the heart."
[Bukhari and Muslim]
To whom ALLAH guides no one can misguide, to whom ALLAH astrays, no one can guide.
Hope this helps for your decisions.
Assalamualikum rahmathuullahi wabrakthahu sir i want investment in hallal way so please guide me
ReplyDeleteWalaikum assalam. There are not many options. I have listed them here:
Deletehttp://halal-investing.blogspot.com/2015/03/halal-investments-non-tax-saving.html
http://halal-investing.blogspot.in/2017/01/strategy-to-invest-in-halal-way.html
Asslaim-u-alaikum
ReplyDeleteAre there any banks in India which offers Islamic Banking services, the way there are such services available in UAE, etc. Razak.
Walaikum assalam. there are no Islamic banks in India as RBI does not allow.
DeleteThere are several rumours as well as several panels setup but the fact is there is none.
As salam alaiikum,
ReplyDeleteI have just purchased one ULIP from Bajaj allainz called "Future gain". In this future gain policy you have the opion to choose your investment in any of the seven given portfolios. There they have one portfolio called PURE STOCK FUND which invests money in shariah complaint stocks only. And this is being supervised by TASIS, TASIS is an organization backed up by mufti's and islamic finance background peoples. TASIS provides certification every month for its Shariah complains.
I want you to please explore above mentioned things on websites of bajaj allainz and TASIS and please get back to me.
If we take this policy and selects 100% investment in PURE STOCK FUND and never utilizes the insurance money just collects on maturity which is a halal profit then I guess this could be very good option for saving Income tax.
Expecting your comments
Jazak Allah khair
Waseem
Walaikum assalam,
DeleteIt is not halal as per my analysis. I have added an article on it now:
Shariah Compliant ULIP/ Pension/ Insurance Plan
Assalamu Alaikum -
DeleteI completely agree with brother Fazeel. Though its names as "PURE" Stock fund, its pure from ethical perspective and not from islamic shariah perspective.
Dear Bro'
ReplyDeleteAssalamu Alaikum
Please suggest me Halal options in India, i work in Gulf and vist India once in a year only.
Walaikum assalam,
DeleteSince you are in Gulf, tax saving is not for you. You can look at the following articles:
Halal Investments
Halal Investment Strategy
Dear Brother Sinan,
ReplyDeleteAssalaml;ikum
I liked your advice very much please continue your work.
I work in Gulf and come once a year to India or less, then the money which i have in bank i try to invest in land but as the rates are very high i cannot do any big investment. on my coming back permanently i need amount to take care of my family, please suggest me options that i can do in halal way.my age is now 46 years.
JazkaAllah
Dear Bro, I am not an expert, but there may be a possible solution, and it depends upon your patience. Try to get small land around 800-1000 sqft in the outskirts of the city or town which can be easily sold even after a small period of time. The market need for small land is very high rather-than going for above 1200 sqft. If you see around outskirts of towns or nearby villages, you will get the land below Guideline Values. When you return from Gulf say three or four years later or as per your plan, definitely the price will shoot-up atleast by some amount. Every year, if you have small amount to target a small land, this idea will work.
DeleteThe other part is investment which gives around 10-15% returns depends on market conditions or risk which I am not aware-off. There is a journal I had subscribed sometime back which gave what is halal investment....that time auto-industries seems halal kind of process, now they have self financing like bajaj finance to bajaj bike, Ford Credit to finance ford cars..........so please check yourself in http://www.islamitijara.com/ or its website for any availability for halal investment.
Bhai , Is there any way to invest in SAUDI ARABIA MUTUAL FUNDS from India , so that we should not have any problem of Interest.
ReplyDeletehttp://www.emeraldinsight.com/doi/abs/10.1108/17538391311329815
Deletehttp://www.svtuition.org/2012/05/list-of-mutual-funds-in-saudi-arabia.html
http://onlinelibrary.wiley.com/doi/10.1002/9781118653814.ch20/summary
I think, if you go through these articles, you will get better idea.
Is investments on land/gold profitable, considering zakaat on these items?
ReplyDeleteAssalamu alaikum, Zakat is on capital not on profits. So whatever gold you hold is to be counted in calculation.
DeleteAs for land unless it is being used, there is no zakat.
I thank god for directing me to this site. I had got answers to so many doubts that was bothering me for years.
ReplyDeleteThanks Fazeel for starting this blog, May Allah's blessing be upon you as well as who come and ask or contribute here...May Allah guide us in the right path.........Aameen
DeleteAmeen
DeleteAsak Brothers, its quite interesting to read through the Q&As.
ReplyDeletei have business in India, operating in couple of cities we do projects with Metro, Airports, and other commercial complexes. we are 100% compliant co., no taxes or any other statutory dues as on today ...
so far we have strictly followed and have not done any investments that accumulates interest, neither have taken any loans where we have to pay.... however citing the growth and work orders in hand, its very difficult to stay at bay without taking investments. please suggest practically doable options.
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