Title: I know interest obtained from Government banks can be used to pay income tax. My question is can the interest obtained from private banks be used for the same?

Question: I know interest obtained from Government banks can be used to pay income tax. My question is can the interest obtained from private banks be used for the same?

Answer ID: 157327Posted on: Sep 1, 2020

Bismillah hir-Rahman nir-Rahim !

(Fatwa: 396/347/L=4/1439)

Paying income tax with interest money received from government banks is equal to returning the amount towards its owner; hence it is allowable to pay income tax with interest received from government banks. It is not the case with the private bank interest; hence it is not lawful to pay income tax with interest money received from the private bank.

قال فى الشامي: لأن سبيل الكسب الخبيث التصدق إذا تعذر الرد على صاحبه . (شامى: 9/553 ط: زكريا ديوبند)