Posted by: Faizan Ahmed | February 14, 2007

Saving tax and investment

Assalamu alaikum,

One of the ways to save on paying income tax in India is to invest in some of the tax saving products like,

  • Personal provident fund
  • NSC
  • Insurance
  • Mutual Funds
  • Bonds
  • Housing loans

etc.,

All these products are interest based. Most of my muslim friends, including me, have not invested till now, and paid tax in full.

One of my good friend asked me start a discussion on halal investments and savings in India. Some of the options I found are,

1. IDAFA :

They proclaim to be shariah compliant investment firm. I would be good if we take the opinion of a mufti regarding its services. It would also be better if they could get approval from a known Islamic institute or scholars.

Here’s what their website says,

Idafa Investments Pvt. Ltd. offers the following Services to help you invest – the Shariah Way.

  • Stock Broking: We offer Stock Broking services since 1994. Our dedicated team of dealers can diligently execute your trades on BSE and NSE. We screen all companies based on the Shariah guidelines.
  • Mutual Funds: A mutual fund is a pool of investments by several thousand investors, which in turn invests in various listed and unlisted securities. We offer investment options in Tata Select Equity Fund, the only Shariah Compliant mutual fund in India, floated by the TATA MUTUAL FUND.
  • Investment Advisory & Management: We can take care of an entire range of Investment related activities for you – from assisting you in selecting stocks to managing your portfolio of stocks for optimum wealth creation.
  • Only investment in their mutual funds  offering would help us in saving tax.

    Caution : I have heard different opinions about investing in mutual funds. Here’s one of them

    Mutual Funds: Are they allowed?

    2. Islamic insurance from LIC

    After Islamic banking, it’s the turn of Islamic insurance. Even as the Reserve Bank of India is exploring Islamic banking opportunities for Indian banks, the Life Insurance Corporation of India has set the ball rolling on takaful (Islamic insurance).

    LIC’s new international joint venture company – Indo-Saudi Insurance Company — will be the first to introduce takaful. This Arabic word means ‘guaranteeing each other’ or joint guarantee.

    Has the product been launched ? Anyone bought it ? Did anyone check with scholars about its permissability ?

    3. Insurance, infrastructure bonds, public provident fund :

    I have heard two opinions about it,

    • I heard from my brother in law that Mufti Sabeel of Vaniyambadi/Ambur told him that it is ok to invest in the above products if the intention is only to save tax and provided, ofcourse, we get rid of any interest that accrues on it and take back only the premium we have paid.
    • I have also heard many scholars disallow it.

    I would  recommend that you consult a scholar whom you trust before taking any decision.

    It would be good if MITA can take the initiative to consult eminent scholars in Bangalore and come up with answers to questions which most muslim IT professionals have on investments for the purpose of saving tax.

    Faizan

    About these ads

    Responses

    1. Jazakallah brother. Better late than never…

      I remember a person who has left his (government) bank job because it involves haram transactions. He use to take at most precaution to invest in his share market business. Once he told me about IDAFA and the suggestion about TATA’s mutual fund to be halal.

      Let me bring this to his notice and ask if he can through some light on technical perspective.

    2. sorry, small correction in the above message. It is not TATA’s Mutual fund, it is one of the MF floated by TATA named Tata Select Equity Fund.

    3. Iftikhar, Assalamu alaikum,

      Jazakallah for the comment. What I have quoted is from their website.

      Did you check with them if any of the Indian scholars have approved of their mutual funds scheme (or rather Tata Fund) ?

    4. Maulana Khalid Saifullah Rahmani of Hyderabad has written a book Jadeed Fiqhi Masaail. It covers fiqhi opinions on a variety of masaail of the modern world including various tax saving options outlined above. He tells in details where we can or cannot invest. My 2 cents.

    5. Islamic Financial Institutions for Islamic Banking

      1. Al Ameen Islamic Financial & Investment Corp. (India) Ltd., Karnatka
      2. Bank Muscat International (SOAG)
      3. Al-Falah Investment Ltd

      NOTE: I found these on a web site. You might want to cross check when you approch these banks
      http://www.islamic-banking.com/ibanking/ifi_list.php
      ———————————————-
      This is for people in Chennai. Does anybody has more information about this?

      April 2007 : HALAL India 2007
      India International Halal Show
      Chennai Trade Centre, Chennai, India

    6. Assalamu alaikum,

      Gufran, do you have that book ? If you do, can you please translate and post relevent pages ?

      If you don’t have the book, Iftikhar, can you please buy the book. As you are in Hyderabad, it may be easily available there.

    7. This website has many books for download (includes books on Fiqh)

      http://www.islamebook.com/

    8. Assalamualaikum

      Faizan bhai, I have not enquired on the approval of scholars on that Mutual fund. But the investment strategy says that:
      The fund continues its policy of non-investment in prohibited sectors like Liquor, Tobacco, Consumer Goods, Finance and Banking and other investments in Interest Bearing Securities.
      With regard to the book Gufran has mentioned, Inshallah I will get hold of that book and let u know ASAP.

      Wassalam

    9. Assalamualaikum Brothers,
      I saw a lot of speculation abt Idafa on your blog, so thought of clearing the air!

      Idafa Investments is not in favour of any tax savings scheme offered by Mutual Funds, LIC, ULIPS, PPF, etc. as all of them are interest based.

      Our take on the issue is as follows:

      Tata Select Equity Fund is the only Shariah Compliant Fund in India. As far as Tax Saving Schemes are concerned, there are none in India which are shariah compliant. But our take on the issue is that pay your taxes, invest the amount, which you would’ve invested in a tax saving scheme in a shariah compliant investment which would give you returns in such a manner that your tax outgoing is covered and you manage to gain over and above that.
      To give you an example, if your salary is Rs. 300,000.00, your tax outgoing would be approximately Rs. 40,000.00.
      Salary Rs. 300000.00
      Standard Deduction Rs. 100000.00
      Rs. 200000.00
      Tax @ 20% on Balance of
      Rs. 200000.00 Rs. 40000.00

      If you invest Rs. 100,000.00 (maximum allowed) in a tax saving scheme, you can save Rs. 20,000 and your tax out going will be Rs. 20,000.00.

      Salary Rs. 300000.00
      Less: Standard Deduction Rs. 100000.00
      Rs. 200000.00
      Less: Maximum Investment in
      Tax saving Scheme Rs. 100000.00
      Taxable amount Rs. 100000.00

      Tax @ 20% on Balance of
      Rs. 100000.00 Rs. 20000.00

      The best tax saving funds in India gave a return of 30 to 35% maximum, and your returns would be in line with the same at best. So your effective gain from the investment would be 35% maximum plus tax savings of 20%, i.e. 55% overall benefit.

      If you invest Rs. 100,000.00 in a shariah compliant fund like Tata Select Equity Fund which gave a return of 60% (absolute as on 24th Dec., 2006), and you get a slight advantage as well as the assurance that your incomes are pure.

      So in my opinion, let your company deduct your taxes, you on your part invest in line with shariah and try to cover your tax outgoings by allowing your wealth to grow exponentially through compounding. Please visit About Us section on http://www.idafa.com to see how you can create wealth through the power of compounding – the shariah way!

    10. As-salaam alaikum!

      That was a good and sensible advise from brother Ashraf Mohamedy. However, every Company listed on Share Markets have some component of their revenue derived from Interest (not seen one Stock which has none). So, is investing in any Stock (other than Tobacco, Alocohol, etc related) really allowed (halal?)?
      Please correct me if im wrong.

      Jazakallah Khair

    11. Assalaamu alaikkum!

      Good to know the Tata select equity fund is the shariah compliant one. What about investing in sector specific mutual fund in IT/Pharmaceutical. Franklin has IT Sector Mutual Fund. Is it in Shariah way? Please advise

    12. Walaikum assalam,

      Brother, Islamic finance is still a debated topic. Please consult a local reliable mufti before you make any decisions.

      You can also consult Br Ashraf of IDAFA (see his comments above).

    13. Assalamualikum,

      Has anyone heard about Voluntary Provident Fund (VPF).

    14. FYI

      NEWS:Taurus to launch country’s first Islamic mutual fund

      http://economictimes.indiatimes.com/MF_News/Taurus_to_launch_countrys_first_Islamic_mutual_fund/articleshow/2549823.cms

    15. please inform me about the tax saving halal investments in india

    16. Assalam ale kum,

      TATA’s selective equity fund does not cover under Income tax 80C and 80D scheme. Please correct if I am wrong.

    17. I am in great confusion……..how to start business. I love business and I want to start my own business. But, I am not having enough funds to start. Obviously, I will approach banks to ask for biz loan. Once I take loan, automatically I will indulge in interest. Brothers please help me to get out of this confusion…………….Allah guide us to take path……….Ameen.

    18. Assalamualaikum Brothers,
      I have only few days left for submitting my investment details,within feb 1st, I have to invest 110000/ in order to save my income tax. I have the money ,but I am in confusion about which sector should I invest my moneyin islamic way. Please help me.

      What is Takaful insurance? What is it scheme datails? is it realiable one

    19. Sabir Ali : I’m not sure if takaful insurance has been launched by LIC. The only information I have is the link to rediff article I have linked to.

      Abdul : Br. Ashraf of IDAFA has explained how Tata Select Equity fund works. Yes, you are correct, it does not save tax.

      I’m not sure if we have any tax saving halal investment option in India as yet.

    20. I have heard about Taurus Parasoli Ethical Fund , which is shariat compliant as per claim, but I think it is not yet launched.

    21. at last I have decided that I will pay the income tax fully. And I will invest the amount of 1 lakhs to buy reliance power share. I have heard that it will be one of the profitable share.
      Is this share is shariat complient? Pl help me if you have any information.

    22. Sabir Ali : Maybe you can go thru http://www.idafa.com or http://www.islamicequity.co.in. I think they have scholars in their shariah board and they can help you invest in the right stocks.

      PS : I’m not part of either company.

    23. Assalamualaikum

      If any of you guys are in Hyderabad, Please do attend an important lecture on “Islamic banking and investment with shariah compliance” by renowed economist Abdul Majeed Zubair saheb on Saturday 12th January 2008 at 10 a.m . sharp at Masjid-E-Azizia, Mehdipatnam.

      Insha Allah I will keep you posted on the above lecture.

    24. Alhamdulilah Lecture on “Islamic Banking and Investment with Shariah Compliance” was conducted successfully.
      More than hundred people attended the program. Majeed Zubair Sb gave the ppt presentation on the topic and it was followed by interesting session of Questions & Answers.

      As we got many mails for video, we have recorded the lecture. An unedited version of the video will be available in a day or 2 with me. Since it contain 3 CDs, im not sure if we can upload the same in youtube or google videos. So please mail me if you are in hyderabad to get the CDs. tahmed.iftikhar@gmail.com

    25. Assalamu alaikum

      Though this topic was started last year, I got this link from one of my friend. Tax saving is really a heftic task for me. I was recruited one year in a company with good salary than the previous one. but in the previous company I had PF, Medical, LTA, etc but in this present they don’t. Now After deducting at the end of the year I Paid lot of money as tax which is a burden as a middle class family. I checked IDAFA but it is not 100% satisfied for me. Because of their Insurance like policy says it will doubled like this, They never tell takaful insurance.

      And LIC initiative to Islamic banking and takaful insurance is not yet implemented. It is us people in of muslims to form a unity for this sole purpose all over India and raise our concern to this Congress Government in the Center.

      Wassalam
      Mahir

      Please send me as much as information regarding islamic investment links to my email id. thank you

      mahir[at]gmail

    26. Assalaam alaikum,

      I am looking to do some investment in the real estate since the market is cooling… not totally sure of it. But my problem is that all the good developments with good rental returns are happening in Madhapur, Gachibowli areas where i dont find any mosque near the best buildings being constructured. So confused whether to invest in those apartments where i dont have a mosque nearby.
      Any comments?
      Jazakallahu khair
      Farhat

    27. Assalamu Alai Kum brothers,

      I am Ezaz. I work for Idafa Investments Pvt. Ltd. and I assure you that Tata Select Equity Fund is Shariah – friendly if not completely Shariah Compliant. It has a policy of non – investment in prohibited sectors like Liqour, Tobacco, Consumer Goods, Banking and Finance and any other Interest Bearing security. You can check this on their website – http://www.tatamutualfund.com/product/tata-select-equity-fund.asp.

      For more information or clarification, kindly mail me.

      Jazak Allah Khair,

      Ezaz Patel
      ezaz@idafa.com
      +91 9920136431

    28. Kindly advise Home & Personal Loans available here

    29. Ass. alik. brothers,

      Can any one of muslim brothers confirm about the investment plan to save tax as per our islamic shariah. Pls reply to my mail ID:
      h_zubair2000@rediffmail.com.

      Jazakallahu khaira.
      H.ZUBAIR AHMED.

    30. Assalam o alaikum to all the brothers and Sisters.. I understand that Relaince Capital has started an Imaan Investment Equity fund, which they say is Sharia Compliant and also provides tax benefit under 80 C..

      Pls enquire about it ..

      Good for people who want their money protected from haraam investment..

      Pls enquire before investing ..

      Thanks

      • Reliance Imaan Investment Plan, Discontinued from 01-01-2010,

    31. Finally we are ready to offer a pure investment plus tax planning product, which complies with Shariah!

      Idafa Investments is launching an Investment product, a long term pension plan, in which the funds are invested in shariah compliant stocks, and you get the benefit of tax savings under sec 80C!
      Of course it is not TAkAFUL, and it does not offer mortality benefits on death or health benefits, etc., thus leaving the contentious issues aside.

      Call me on +91 22 40535959 for more details. You can email me on invest@idafa.com as well.

    32. Salaams Mihir,
      We can not offer Islamic Insurance products like Takaful, but try our best to work within the laws of the land and offer the most workable & viable shariah compliant products.
      We offer 904 companies in which you could invest, we offer one Mutual fund scheme and one tax planning product, we offer portfolio management products, please don’t expect us to offer the moon! We can work in the realm of reality, not sit back and dream of the ideal islamic situation.
      The day India opens to Islamic Banking & Finance (incl. Insurance), Idafa Investments will be there in the forefront, bringing products for you, as we are in the forefront today, offering the best and the purest shariah compliant products available in India.
      We do not promote the insurance product from from Reliance Capital, as we are not convinced about its compliance character.
      So, rest assured, we will only offer that which really complies to the Shariah!
      Call me on 40535959 for more details.
      Ashraf

    33. Is the Islamic Pension Plan already launched ??

    34. assalam allaikum,

      please give any idea for investment for tax benefit
      without interest and rewards.

    35. I know from parsoli corporation that Tata AIG Life InvestAssure Future is the newly launch life insurance which is halal. Is it reliable?

    36. I think that Reliance Imaan Investment Plan is near or more clear for those people who need to avail tax benefits and those people who cares about their returns in form of Halaal like interest free income. This plan can help them. I think we should raise these kind of products who are performing in the name of shariya. So, I hope my Brothers of Islam to debate in a good way to know actual status of this product in healthy mood. Thanks everybody. Feel free to ask regarding this plan’s status in Shariya. It says that it is 80% decline towards Takaful’s Module Wakaalah. so keep in touch. Fee Amaanillah.

    37. Assalam walaikum brothers,

      I have gone through the Reliance Imaan Investment plan in detail which claims to be Shariya compliant. However, this claim appears to be false as they have a charge on insurance which is invested in interest giving instruments. Also, Reliance does not reveal what companies would be selected for investment as according to Shariya not only the sector of the company (non-gambling, non-alcoholic etc) needs to be considered but also the debt obligation of the company is very important.

      Ashraf bhai,

      Could you give details of the pension investment plan a little more which is Shariya compliant as per you? Where are the funds invested? If its a pension plan I am assuming that there is no insurance, is that right?

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    38. Dear Brothers, Alhamdulillah I am here, i was called here by some reference. I am Suleman Khan, CEO of Interest Free Group. We are inshaAllah going to come into market will 100% fully compliant investment plans. Infact we have already reached Hyderabad, Mumbai and Tirupati. I am an Islamic Finance Scholar. I was doing a lot of research on indian companies and i declare IDAFA, Parsoli Corporation LTD, Reliane Imaan and all this to be NON SHARIAH COMPLIANT. What the hell is Shariah Friendly” we want fully shariah compliant or else it is not accepted in Islam. For full details of their failure to be shariah compliant, please contact me on ceo.sulemankhan@gmail.com or attend my lecture at Hyderabad in the first half of Feb 2009. If you have any questions about Islamic Finance and banking, please do not hesitate to contact me on my email id

    39. To Br. Ashraf Abdul Haq Mohammedy,
      Hope this message finds you in good health and strong eemaan. Brother I really appreciate your work of taking an initiative to start shariah compliant investments. Brother the companies which you are presenting are having debt money and they are using their debt money in the same business. Your website says so give away the same percentage of money in charity. If i am mixing two teaspoonfuls of poison in a gallon full of water, and ask you to throw those two teaspoons and make it pure and drink, will you drink brother? interest money if involved in any company, should not be supported. But unfortunately you list them. It will be fair if you can personally talk to me on my mailing id ceo.sulemankhan@gmail.com

    40. Suleman bhai,
      I understand your views and agree that technically none of them are fully shariah compliant. Having said that, these people are atleast trying to provide best feasible options under given constrains.

      I am not a shariah expert and instead of investing in PPF and NSC to save tax I agree with Idafa suggestion

    41. Assalamalaikum,

      As a layman i am at wits end. Can someone with full confidence guide me which if any organisation in India is offering halal investment plans that will save me tax. I live in Delhi and shall appreciate a quick reply.

      Can Parsoli Corp/ IDAFA reply to Br. Suleman’s charge?

      May Allah strengthen and guide all those who are trying to strive on the right path!

      Amir

    42. It is ones own choice here now to accept the hardly tried and worked out options from IDAFA or pay tax instead. Because i dont hesitate in saying that IDAFA is better than parsoli and reliance in this matter as they are near to compliance. As there is no shariah compliant tax saving option in India, people can go ahead to choose nearest compliant one or else pay tax, in that way i support IDAFA and brother Ashraf, But regarding investments, i am sorry to be tough but the truth stands clear.

    43. Salam

      As per your previous comment you had kept malice for both IDAFA as well Parsoli and Reliance so can we know the reason you state IDAFA is better than the rest.

      Please let us know so that we can also propagete the same.

    44. Dear Brother Mohammed, I mean to say that non of them are fully shariah compliant which they claim to be of. But IDAFA is more closer to compliance than parsoli and IDAFA even though it is not fully shariah compliant. But as there is no better tax saving fund, thats why i support IDAFA only in that till we have a fully shariah compliant tax saving option. I have said it to be better but not shariah compliant. Because people are falling prey to parsoli and reliance, for them i suggest that if you dont have any other option than to commit sin then commit the smallest. But i dont support any of them when it comes to investing money in shares / MF what they offer. Tax saving has a no option hence it can be allowed only for the moment. But that with the neeyah of tax saving, but with the neeyah of investments, where you have multiple options available and every option haraam. You have to work out everything. The companies listed by IDAFA are better than parsoli but not fully shariah compliant so investments even there cannot be permitted

    45. Is any Tax saving plan by IDAFA launched.

      If so do u have any of ur executives for bangalore

      Thanks in advance

    46. Dear Syedbhai

      Someone from Idafa had given their website details http://www.idafa.com wherein you may find their contact details. You can speak to them directly for Shariah complaint tax saving plan.

    47. Assalaamalaikum!
      Dear brothers I am a first year student of BBA. Few days back i saw the Imaan insurance scheme by reliance. I thought of attaining an agency for it…but i did not find it compliant with sariha appropriately. It does not follow proper guidelines of the takaful scheme.
      Please advice.
      JazakumAllah Khair!

    48. any sensible person wanting to do shariah compliant stock brokering with parsoli beware…. read this before…

      Sebi ruling concerning parsoli

      http://www.sebi.gov.in/cmorder/Parsoli.pdf

    49. Assalmualikum
      Wealth City, provides Faith based Financial and Investment solutions to clients, specializing in Shariah / Ethical investments.

      We bring the best of Stock Markets, Mutual Funds, Portfolio Management Services, Real Estate Investment, Wealth Management Services, etc all in Ethical / Shariah Compliant Way.

      We aim at creating a “Just and Equitable World” and Wealth City is a step towards that goal, whose services will inculcate a culture of savings and investments, ethically and profitably there by creating Wealth and help individuals achieve their long-term financial goals

    50. Assalamualikum,
      Our Head Office is in Chennai, We provide shariah compliant stocl brokering services to muslims.

      We provide complete financial guidance concerning tax savings, retirements etc all in a shariah way..

      pls visit our website wealthcity.in for more details.

    51. http://www.wealthcity.in

    52. Halla investment for india muslim

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    53. Halla investment for india muslim

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      bangalore contact :
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      0804077763

    54. assalamualakum brother,
      suleaman bhai , and faizan bhai,
      i am a research scientist in pharma and working in pune
      my problem is i want to invest some money in stock market and or mutual funds but according to shariyah compliant only,
      so pls can u guide me in india and in pune basocally ,which r the companies in which i can invest and how

      pls reply
      allah hafiz and zajak aallah

    55. Assalamualaikum brothers,

      where can get the list of Halal equity list, so that i can invest in those shares.

      Jazak Allah,
      Parvez

    56. ASAk Friends

      is LIC india is halaal ? some of friends says we can take a LIC policy to save the tax , because in India it is halall? Please clarify me on this as I am making a decision to take a policy in LIC .

      • hi suhail, iam interested to know ,did u take a lic policy.,there r my many muslim friends who r not satistied with lic policy..,do you agree that taking lic is not against ? pls do reply me in my email id. sngt_bobby@yahoo.com. thanx n rgds.

    57. assalam wa alaikum faizanbhai i would like to know about the investment and what r the benefits.

    58. ASAK,
      I would like to know the investment for tax saving as per sharia. I wuold like to know about mutual funds also as per Sharia, can you please guide me.

      Allah hafiz.
      Shireen.

      • Dear Imtiyaz and Shireen:
        Shar’ah has laid down certain rules that have to be compulsorily followed by all the owners, investors and brokers. As per the current Indian scenario of the contemporary interest-based system, the shari’ah compliant funds (I don’t believe but people have named them this way) seem to go hand-in-hand with haram. The basic rules for a company to be shariah compliant and eligible to invest are given here:
        1. The company should not have any haram thing as their business product to deal. For example: Alcohol, Interest based lending, Movies, Tobacco etc
        2. To run the business or to expand it, the company should not involve in any loans, neither should they raise money by selling bonds, interest-bearing shares etc
        3. There should be 0% interest based income in the company and if the banker provides interest, they should not consume it on the whole.

        I have seen many companies to pass the first point but they fail at point one and two. The Shari’ah Based Investment brokers like IDAFA, WEALTHCITY etc have come up with a moderate system. They have decided to allow impermissible income upto certain percent (mostly 33%) for which they have no roots in Islam. So they are going hand-in-hand.
        For more details about any thing related to shariah ruling on Financial Transactions, please write to me on askaboutfinance@gmail.com. I am also available on facebook. You can search me with my email address given here.

        I am unable to visit this thread due to various reasons and I think I have visited today after more than one year.

        Jazaakallah

        Suleman Khan
        Scholar of Islamic Finance and Commerce.

      • Dear Imtiyaz and Shireen:
        Shar’ah has laid down certain rules that have to be compulsorily followed by all the owners, investors and brokers. As per the current Indian scenario of the contemporary interest-based system, the shari’ah compliant funds (I don’t believe but people have named them this way) seem to go hand-in-hand with haram. The basic rules for a company to be shariah compliant and eligible to invest are given here:
        1. The company should not have any haram thing as their business product to deal. For example: Alcohol, Interest based lending, Movies, Tobacco etc
        2. To run the business or to expand it, the company should not involve in any loans, neither should they raise money by selling bonds, interest-bearing shares etc
        3. There should be 0% interest based income in the company and if the banker provides interest, they should not consume it on the whole.

        I have seen many companies to pass the first point but they fail at point one and two. The Shari’ah Based Investment brokers like IDAFA, WEALTHCITY etc have come up with a moderate system. They have decided to allow impermissible income upto certain percent (mostly 33%) for which they have no roots in Islam. So they are going hand-in-hand.
        For more details about any thing related to shariah ruling on Financial Transactions, please write to me on askaboutfinance@gmail.com. I am also available on facebook. You can search me with my email address given here.

        I am unable to visit this thread due to various reasons and I think I have visited today after more than one year.

        Jazaakallah

        Suleman Khan
        Scholar of Islamic Finance and Commerce

    59. Assalamalaykum!Deeni Brothers, Suleman Khan
      I respect your knowledge and would take the pleasure to requote the rules laid down by Shar’ah that have to be compulsorily followed by all the owners, investors and brokers. The basic rules for a company to be shariah compliant and eligible to invest are given here:

      1. The company should not have any haram thing as their business product to deal. For example: Alcohol, Interest based lending, Movies, Tobacco etc

      2. To run the business or to expand it, the company should not involve in any loans, neither should they raise money by selling bonds, interest-bearing shares etc

      3. There should be 0% interest based income in the company and if the banker provides interest, they should not consume it on the whole.

      Heera Investment fulfills all the above mention criteria. Heera Investment is an opportunity to investment in hallal business lead by an only muslim women of India with a sound knowledge of hallal and haram in accordance with Shar’ah.Heera Group deals in Gold, Textiles,Electronic,Mineral Water,Education for Women and Insha Allah!Hajj Umrah Tours,Construction, Insha Allah the Road will never end for HEERA GROUP!
      I call to our muslim brothers and sister to come and join hands for hallal

      Also be an Ansaar with Heera Finance Pvt.Ltd. to eradicate Usury.

      Jazakallah

      • Heera Gold has no licence from the RBI to collect funds from public. According to RBI act 1998, no one can collect money from public unless they obtain a licence from the RBI. They jsut have enough licences to run an organization but not to raise funds. And there is no such licence available in India where you can raise funds on profit and loss sharing basis except shares. For which Heera gold should be listed in the stock exchange by converting its status to a Public Ltd venture. The bonds given by heera gold stands no value in the market and the Government will take no responsibility. Instead if this is known to the Economic Offenses Wing of the Police, Heera Gold can be sealed and its promoters jailed. I have a soft corner for Heera Gold because once I was a part of it but legally this company is at huge risk and so are the investors.
        Dear sister Umme Abdullah, If you want to show me those old licences an certificates such as IEC, Trade Licence, Current Account, TIN Number, Registration of Firm, Pvt Ltd by laws etc… then please don’t show them to me as I know them very well. I request you to call me on 08106888775 and I shall discuss the issue with you. I don’t want to write anything about Heera Gold in public and harm its image and neither do I wish to push the Muslim investors on risk. May Allah help you in calling Muslim ummah towards the right path and also help you in striving for true knowledge.
        I don’t like to tell more about myself but Alhamdulillah I have studied the prevalent Economical system in my MBA, M.A (Economics) and MIFA and also studied the shariah rulings. I am a student of knowledge. I would be leaving for Riyadh within 3-4 days from now. So I request you to contact me so that we understand this in a better way.

        Jazaakallahu Khairan
        Your Brother in Islam
        Suleman Khan

        • Salaams & JazakAllah, very insightful information on Heera Gold. I really wish that the company gets listed on BSE / NSE and we have a 100% shariah compliant option for our investors. Pls send me your Riyadh numbers on ashraf@idafa.com to discuss this possibility further. We as responsible members of the community have to assist people who are trying to provide Halal sources of income to Muslims in India.
          Jzk
          Ashraf

    60. Usary is not same as interest. It’s a complex term. Please visit http://mostmerciful.com/?p=206
      Let’s start from somewhere and encourage govt. of india and companies for Sharia compliant system.

    61. i want to invest amout in this what is the process

    62. saving tax and investment is intrested this gives better life to us

    63. Dear Brothers/ Sisters,

      Good efforts made to see the halal way of saving tax and investments,

      would like to share a comparission said by a moulvi.. not sure whether this is Hadith or an example given by a good person.. which demonstrates the halal, haram and mujteba(doubtful)…

      IF the king declares that the little centre part of the land in a huge ground, which is reserved for the kings animals to feed the grass .. and the rest portion is for the normal people … then we can say that the resevered area is haram for the normal people to take their animals into it to feed..but at the same time the area apart form that is legal(halal).. and the overlapping area between them is considered as mujteba(doubtful)..

      Now my concern is we need to focus on the legal grounds and other options that are available to save tax … as education of self and spouse.. expenditure occured in registration and stamps while you purchase a property.. expences towards the dependent handicap… and many others … in different sections..

      In the last five years no one tried to list out the legal grounds to save the tax instead of focussing only on the 80c… that to mutual funds… and from the next year govt. plans either to remove the mutual funds or to increase the lockin period to five years or both.. and by seeing the market conditions that will be the worst choice..

      To conclude the boundaries of legal(halal) ways are not limited.. think that yours earning is only that you get after you pay your tax if you can’t save that in a halal way..

    64. mashaalla its halal

    65. Aslkm, the only option I found islamic in india is, pay tax to the government (20%), and purchase some gold/some other thing whos average value increase (20%). so that you can save the tax InshAllah.

    66. pls do inform me is lic of india fullfill’s the sharia law, is it having the same features of takaful. can my muslim friends invest in lic policies,will it be halal.pls i require an experts view and answer.since i don’t want to missguide my friends,i want to give them a genuine answer.
      thanx n regards!

      • LIC OF INDIA invests its collection into debt instruments, and into many areas unknown to the investor (policy holder). It is not permissible for a muslim to invest his/her money into debt instruments and fetch fixed returns and into undisclosed sources. It is strictly prohibted to subscribe for an lic policy for a muslim. All the insurance companies in India are governed by laws which forces companies to invest into fixed interest bearing money markets and even companies find it to be more risk free. A small percentage of funds are invested into halal sources. All insurance companies also follow a no information policy about their investments.

        Suleman Khan
        Researcher in Islamic Finance
        Faculty member of Dept of Business Studies
        King Saud University, Riyadh
        MA (Economics), MBA (Finance), PhD (alternative financial systems) (not completed)

    67. HEERA GROUP IS ONE OF THE BEST COMANY FOR HALLAL INCOME,

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    81. Assalamu Alaikum
      take insurance policy is halal or haram pls reply and also tell me if we gave interest money to the orphanage or a widow is it right or wrong plss reply 

    82. I want to know the tax treatments of profits received from heera gold. Is it taxable or exempt.


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