• Transactions & Dealings >> Interest & Insurance

    Question ID: 50542Country: India

    Title: Interest Money

    Question: I work in a MNC in New Delhi. I get salary after deduction of income tax. The bank gives interest on my saving account and salary account. My question is that can I use that interest amount personally? As I read in one of your fatwa that the interest amount which we get from bank, we can use that in paying income tax.

    Answer ID: 50542

    Bismillah hir-Rahman nir-Rahim !

    (Fatwa: 313/315/N=03/1435) Since income tax is an unjust and unnecessary tax hence you may use the interest money received from government banks to pay it. It is lawful as it is like returning towards the owner of the money which is the first use of such haram and malicious money. It will not be considered using in personal needs. Thus it shall in no way be lawful to use the interest money in one’s personal use such as to buy a car or fulfil any household requirement with it. However, if any person is extremely poor and needy then it is lawful for him.

    Allah (Subhana Wa Ta'ala) knows Best

    Darul Ifta,

    Darul Uloom Deoband, India