Virtues of the People of the Scriptures Who Embrace Islam
Muhammad bin Ishaq and others, including Al-Awfi who reported it from Ibn Abbas, said;"These Ayat were revealed about the clergy of the People of the Scriptures who embraced the faith. For instance, there is Abdullah bin Salam, Asad bin Ubayd, Tha`labah bin Sa`yah, Usayd bin Sa`yah, and so forth.
This Ayah means that those among the People of the Book whom Allah rebuked earlier are not at all the same as those among them who embraced Islam.Hence Allah's statement,
لَيْسُواْ سَوَاء ...
Not all of them are alike."Therefore, these two types of people are not equal, and indeed, there are believers and also criminals among the People of the Book, just as Allah said,
In verse 110, it was said that among the people of the Book there are those who believe, yet most of them are disbelievers. Details appear in the present verse which gives a complementary profile of those who believed from among the people of the Book, and by becoming Muslims, they adopted the distinguishing hallmarks of the Faith that go to make believers the best of communities.
Soon after praising those who had embraced Islam from among the people of the Book, the text censures those of them who did not embrace Islam and insisted on retaining their stance of disbelief, not realizing that their wealth and their children will be unable to save them from the punishment of Allah and Hell shall be their eternal abode.
Verse 117 declares through a similitude that disbelievers simply waste what they spend in this worldly life, for belief in Islam is a pre-condition in order that such spendings be acceptable with Allah, of whatever sort they may be. The similitude stresses the fact that disbelievers inflict this injustice upon themselves when their spendings go to waste in this world and remain rewardless in the Hereafter. If they were not to wrong themselves, if they were to embrace Islam, they would have been like other Muslims who, on suffering a worldly loss, are compensated by Allah through reward and forgiveness of sins, as reported in ahadith.
Tazkirul Quran
Maulana Wahiduddin KhanOn ayahs 115–116
This refers here to the conduct of the People of the Book (believers in former revealed scriptures), and their immediate recognition and acceptance, in all humility, of the divine truth as proclaimed from the lips of the Last Prophet. At that time there was, on the one hand, the religion of Moses, invested with all the strength of historical grandeur and sanctity of tradition. On the other hand stood the religion of the Prophet Muhammad, which had yet to acquire the force of argument, historical grandeur and traditional sanctity to support it. This difference between Moses’ religion and the religion of the Prophet of the time posed the greatest obstacle to the acknowledgment of the latter’s religion. Yet this obstacle was successfully overcome and the religion of the contemporary Prophet was welcomed.
Uthmani text of the Madinah mushaf (King Fahd Complex). Translation: Saheeh International. Tafsir via Quran.com.