Assalamualaikum. Defence Services Officers Provident Fund is a fund where an officer has to deposit some amount of money from his salary every month. Its compulsory. The money remains with the government and government gives a good percentage of interest on the deposit. Though money remains for the officer, but it never comes to his hand until the end of his service. In between, if some one wants to draw some amount of money, he has to give back the same with even a higher percentage of interest. now, my question is, the interest that the government is giving, is it hallal or haram? The second question is, is the deposit of money subjected to zakaah?
Al-jawab billahi at-taufeeq (the answer with Allah's guidance)
From the information you have provided about DSOP fund, this involves interest. Therefore, to participate in this type of fund will not be permissible.
It is advised that you search for another work. Know, if one leaves something for the sake of Allah, surely Allah will give him better than what he left. Allah Ta'ala Says : "And whosoever fears Allah and keeps his duty to Him, He will make a way for him to get out (from every difficulty). And He will provide him from (sources) he never could imagine." [65:2-3].