• Transactions & Dealings >> Interest & Insurance

    Question ID: 63549Country: India

    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: 63549

    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