Difference between deen and religion:

The words Deen and Madhab are entirely different from each other
with regard to their underlying concepts. Although in our part of the
world we generally refer to Islam as Madhab (religion), yet what is
interesting indeed is the fact that the word Madhab has never once
been used in the entire treasury of the Quranic text and Ahadeeth
literature! Instead, the word that has almost always been used for
Islam in the original sources is Deen.

The fundamental difference between the two terms must be

understood. Madhab, or religion, is a term used for a set of beliefs and
rituals of worship. On the other hand, Deen refers to an entire way of
life that pervades all aspects of life. In other words, as compared to
Madhab, Deen is a far more comprehensive, all-encompassing reality.
With this backdrop, it will perhaps not be entirely correct to say that
Islam is not a Madhab (religion), because all of the elements of a
Madhab are certainly part and parcel of Islam - it includes the articles
of belief, spirituality, and the etiquettes of worship (Salah, Saum,
Zakah and Hajj). Hence, it would be more accurate to say that Islam is
not merely a Madhab, but an entire code of life (Deen). It not only
offers whatever constitutes religion, but is endowed with the elements
of a complete way of life. Hence, Islam is, essentially, Deen.

In this context, it must also be understood that while several religions

can co-exist at a time in a particular region of the world, there can
only be a single Deen (way of life). It is not possible, for instance, for
capitalism and communism to coexist in a country at the same time.
Only one will be dominant and prevail over others. Similarly, monarchy
and democracy cannot simultaneously be established in a country. A
system can either be based on the law of Allah (swt), or it will be
against the law of Allah (swt). There cannot be two parallel systems,
although there can be several religions co-existing at a time in a
certain place. The only exception can be made in the case of a single
dominant system ascendant above all, subservient to which, all
shrunken up and sidelined, may exist other systems. Allama Iqbal
said: In a state of enslavement, it is reduced to a single, small droplet
/ The very same life which, when freed, becomes a ceaseless,
shoreless torrent!.