Title: Paying Income tax from interest of private and Govt banks

Question: I work in software company income tax is deducted from my salary, and remaining money is deposited to my account from company. I have 4 bank accounts, 1 govt. bank and 3 private banks. Interest recived from Govt Bank (2012-2015, Rs 50,000), interest received from private Banks (2012-2015, Rs 45,000). Income tax deducted from salary (2012-2015, Rs 4 lakhs). (1) Can income tax be paid from interest money received from private, and Govt Banks both? (2) As income tax is deducted from my salary and remaining amount is deposited to my account, can I use the interest received from bank, if it is less than income tax already paid for that particular year?

Answer ID: 63196Posted on: Aug 31, 2020

Bismillah hir-Rahman nir-Rahim !

(Fatwa: 255/195/D=03/1437) As much amount is deducted in income tax you may use that much amount from the interest money which you have received from the bank. But it shall be necessary to maintain its accurate account lest the amount of actual interest should come into your personal use; therefore it should be avoided.