• Transactions & Dealings >> Interest & Insurance

    Question ID: 31431Country: Pakistan

    Title: Clarification regarding my previous question about payment of tax from Interest money.

    Question: I bought a life insurance policy from State life (which is government owned) in 1994. Since then I have been paying Rs. 5800/- as premium in every December. The policy is for 20 years. So after three more years I would get Rs. Two Lac as bonus money. In addition to this I would also receive Rs. 116,000/- which I deposited as premium in 20 years. However now I have realized that the Bonus money is Interest and is therefore Haraam.After receiving this bonus money can I use it for paying future property tax (which is about Thirty one thousand rupees per year) charged on my house by Government and also for paying future income tax. Similarly about seven years ago I invested some money in fixed deposit schemes of national savings centre owned by Government. Now after realizing that the profit I am receiving from them is actually interest I have stopped investing in these schemes . Can I use the Interest already received from them also for paying future property tax and future income tax

    Answer ID: 31431

    Bismillah hir-Rahman nir-Rahim !

    (Fatwa: 555/464/B=1432) The amount of two lakhs as bonus which you will receive after buying life insurance policy or in case of investing in saving centre whatever profit you receive, all are interest, unlawful and evil earnings. It is not lawful to use it in one's personal need. You can pay property tax and income tax by it. While the rest amount you can give to the destitute poor, needy or miserable debtors without an intention of reward.

    Allah (Subhana Wa Ta'ala) knows Best

    Darul Ifta,

    Darul Uloom Deoband, India