Is it permissible to give non-Muslim neighbours and friends Christmas and Diwali gifts, and to say 'Happy Christmas' and the like?

Answer

Imaam Az-zaliee (Rahmatullah alayh) states in Tabyeenul Haqaaiq:

"Giving in the name of Neeroz and Maharjaan is not permissible. That is: Gifts on the occasion of these two days are Haraam, in fact Kufr. Abu Hafs Al-Kabeer (Rahmatullah alayh) said: 'Even if a man worshipped Allah for 50 years then on the day of Neeroz he gifted some mushrikeen an egg thereby intending to honour that day, then verily he has committed kufr and all his deeds (of ibaadat) are eliminated'."

It is not permissible to give the mushrikeen gifts on their holy days nor is it permissible to greet them in their kufr styles.