Title: Pay Interest Money for Income Tax

Question: I am serving in public limited company and have been attracted substantial amount of income tax every year. Kindly clarify on following points: (1) We are joint family and our savings is being transferred to some common bank accounts in SBI, ICICI & AXIS. Since, I am doing job in private company, I am the only person in family who needs to pay income tax. As per already answered Fatwas, we can pay interest earned from bank account for income tax. However, in job, since the income tax is paid directly from salary by employer, how should we consider? Should we consider interest earned in saving bank account against income tax paid by employer and use interest earned money for personal use? Can I consider total interest earned into our common bank account for income tax being paid? We have now 1 lakh interest money earned in common bank accounts in past several years, and up till now I have paid 1 lakh+ income tax which was paid every year. Can I use this interest money for personal use?

Answer ID: 61074Posted on: Aug 31, 2020

Bismillah hir-Rahman nir-Rahim !

(Fatwa: 677/677/SD=11/1436) Yes, as much income tax is deducted from your salary you are allowed to use that much interest amount which you receive in your bank account.