And let not those who [greedily] withhold what Allāh has given them of His bounty ever think that it is better for them. Rather, it is worse for them. Their necks will be encircled by what they withheld on the Day of Resurrection. And to Allāh belongs the heritage of the heavens and the earth. And Allāh, of what you do, is [fully] Aware.
(And let not those grieve you who rush with haste to disbelieve) 3:176.
Because the Prophet was eager for people's benefit, he would become sad when the disbelievers would resort to defiance, rebellion and stubbornness. Allah said, `Do not be saddened by this behavior,'
(verily, not the least harm will they do to Allah. It is Allah's will to give them no portion in the Hereafter.) for He decided with His power and wisdom that they shall not acquire any share in the Hereafter,
Anomalies in the conduct of Jews were mentioned at the beginning of Surah 'Al-` Imran (21-25). The text now reverts back to the same subject. The verses cited above carry related topics. In between, there are words of comfort for the Holy Prophet ﷺ as well as those giving good counsel to Muslims.
Commentary
The first (180) of the seven verses (180-186) appearing here repudiates miserliness and carries a warning for those who practice it.
The Definition of Miserliness and the punishment it brings
In the terminology of the Shari` ah of Islam, miserliness (بُخل Bukhl) refers to the act of not spending that which it is obligatory to spend in the way of Allah. Therefore, miserliness is forbidden (haram). Besides, it carries a stern warning of Hell for its practitioners. As for occasions where spending is not obligatory (wajib) but only recommended (mustahabb), then not spending there is not included under the miserliness which is forbidden. However, this too is called miserliness in its general sense. As said earlier, this kind of miserliness is not forbidden (haram) but against the preferred choice (khilaf aula) it certainly is.
Appearing in Hadith, there is another word - شُّحَّ Shuhh - also used in the sense of بُخل Bukhl or miserliness. By definition, it means not spending what it was obligatory to spend - one may go even farther than that by remaining consumed with greed to increase one's wealth. This then, shall be a crime much more severe than ordinary miserliness. Therefore, the Holy Prophet ﷺ said:
لا یَجتمِعُ شُحُّ و ایمانُ فی قَلبِ رَجُلِ مُسلِم ابَدا
That is, miserliness (Shuhh) and faith (Iman) can never coexist in the heart of a Muslim. (Qurtubi)
The punishment for miserliness بُخُل (Bukhl) mentioned in this verse: 'They shall be forced, on the Doomsday, to put on round their necks the shackles of what they were miserly with' has been explained by the Holy Prophet ﷺ in the following words reported by Sayyidna Abu Hurairah ؓ
'Anyone Allah blessed with some wealth and who did not pay the zakah due on it properly will find his or her wealth turn into a deadly snake shackled round the neck chomping at the person's mouth from one to the other end of the lips and saying: 'I am your wealth. I am your capital gain.' Thereafter, the Holy Prophet ﷺ recited this verse (180). (Al-Nas'i, from Tafsir al-Qurtubi)
Tazkirul Quran
Maulana Wahiduddin KhanOn ayahs 179–181
Having faith implies not being obsessed with one’s own self. Such an obsession amounts to assigning the position of greatness to one’s own self rather than to God. A believer should not be engrossed in the world, as this would mean that he did not attach real importance to the Hereafter. A believer should eschew arrogance, miserliness, injustice, and even love for and deep attachment to anything other than God. He should instead adopt the ways of God-worship, humility, generosity and justice. This would show that he is sincere in his faith and that he has actually dedicated himself to God and the Hereafter. Failure to do so means that he is not sincere in his faith. In spite of a formal acceptance of faith, he would in fact be living in this world very much like the non-believers. The division into good and bad souls in the Hereafter will be based on reality rather than on ostentatious behaviour. We find that wicked people too have been given full freedom. But it is only so that they can reveal their entirely perverse nature (what lies within them). Yet, however hard they may try, they can never succeed in vanquishing the believers. They have the power to use their freedom only where they themselves are concerned, not against others.
Uthmani text of the Madinah mushaf (King Fahd Complex). Translation: Saheeh International. Tafsir via Quran.com.