Title: Can I use fixed deposit interest money for paying income tax?
Question: I am a Govt employee and paying income tax which is deducted from my salary. I made fixed deposit of 150000 Rs for 3 and half month and getting approx 2900 Rs as interest. Now my query is that can I use that money for paying income tax. Income tax amount which I pay is much more than the amount which I am getting as interest credit.
(2) Another query is that is it legal to make fixed deposit for particular duration?
Answer ID: 63549Posted on:
Aug 31, 2020
Bismillah hir-Rahman nir-Rahim !
(Fatwa: 396/351/SN=04/1437)
(1) You may do so.
(2) No, fixed deposit is purely interest based dealing which is not allowed in anyway.
يَمْحَقُ اللّهُ الْرِّبَا وَيُرْبِي الصَّدَقَاتِ الآية [البقرة : 276]
Allah (Subhana Wa Ta'ala) knows Best
Darul Ifta,
Darul Uloom Deoband, India