Title: Tax and Chit fund

Question: I came to know that it is permissable to pay tax from interest money from your previous answers. My question is: I have two chits in chitfund running by some other person in my native. 1. Is it permissable to pay tax from the interest what I'm getting from the chitfund? 2. Is it permissable that prior to getting the interest money, I will pay tax from my halal money thinking that I'm paying from interest money what I'm getting after completion of chitfund and I'll take that much money from the interest money of the chitfund? In simple words, first I'm paying my halal money as tax then taking from interest money of chitfund. Is it allowed?

Answer ID: 31446Posted on: Sep 1, 2020

Bismillah hir-Rahman nir-Rahim !

(Fatwa: 552/460/B=1432) (1) What is chit fund? How it works? What is its procedure? How the interest amount includes in it? Explain it. Is it any government fund or private fund? Explain all these then you shall be answered. (2) You can pay income tax with your halal and pure money. But it is not lawful for you to use the interest money that you would receive later. It is impure money; it is wajib on you to give it in charity to the poor and needy ones without the intention of reward in order to keep yourself away from its harm.