Furthermore, the Almighty’s words, “with one that is better” embrace superiority in three respects: better in kind, better in amount, and better in manner. For example, if someone says, “Peace be upon you,” and you reply, “Welcome! Dear father of so-and-so, may Allah preserve and honor you—please come in,” such a reply is invalid; even if you repeated it a thousand times it would not avail you, and you would be blameworthy, because you did not return the greeting with something better or even its equal. When he said, “Peace be upon you,” he combined a prayer for your well-being with his greeting, whereas your words “Welcome!” are merely a greeting with no supplication. You must therefore answer with words that are better in kind, better in amount, or at least identical to his.
Likewise, if he says, “Peace be upon you and the mercy of Allah,” and you reply only, “And upon you be peace,” that is impermissible, for you have not responded with better or with the like; you must say exactly what he said.
Superiority also concerns manner. Thus, if he greets you in a clear, audible voice, do not respond with a half-muttered reply. And if he faces you directly when greeting, yet you answer while turning away and disdainfully tilting your cheek, that too is a deficiency—you have not returned the greeting, nor have you done so in a better way.
The plain sense of this noble verse is that if a non-Muslim greets you clearly with “Peace be upon you,” and you answer, “And upon you be peace,” there is no harm in that, for you have replied in kind. As for the Prophet’s statement, “When the People of the Book greet you …"