Darul Iftaa Mahmudiyyah

Paying Taxes with Interest

· 7 Jumada I 1435 AH1 min readFatwa 28567English

Question

I work in a private Ltd. Co. in India.Each year they deduct the tax from my salary as per Govenrment Policy. I heard we can pay Income Tax through Interest money received from Banks. If so how will I adjust since my halal money is already deducted and interest money is in my personal bank and some interest amount in salary account if I keep some amount for a longer duration.

Please advise. Till now my whole family is giving the interest money in charity.

Answer

In the Name of Allah, the Most Gracious, the Most Merciful.

As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.

First and foremost, it is Harām to engage oneself in interest bearing transactions.

If despite all measures taken to avoid interest, still some interest money has accrued, it will be required to dispense of it through charity without the intention of reward. It is not permitted to pay one’s taxes with it.

And Allah Ta’āla Knows Best

Khalil Johnson

Student Darul Iftaa
Canada

Checked and Approved by,
Mufti Ebrahim Desai

Answered by
Khalil Johnson
Checked & approved by
Mufti Ebrahim Desai
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Source: Darul Iftaa Mahmudiyyah — https://askimam.org/public/question_detail/28567
Fatawa SA: https://fatawa.co.za/fatwa/askimam-28567

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