• Transactions & Dealings >> Interest & Insurance

    Question ID: 168717Country: India

    Title: IT return claim on charity done using interest

    Question: I have received some interest from my savings account, I have given it in charity (without intention to get sawab). Now can I show this charity in income tax returns so that tax department will refund me some amount on it?

    Answer ID: 168717

    Bismillah hir-Rahman nir-Rahim !

    (Fatwa: 538/449/N=06/1440)

     

    Income tax is non-Shariah tax. It is lawful if one can save oneself from it in anyway. Thus the interest of saving bank which you gave in some charitable institution without an intention of reward you can show it in your income tax return. And in this case the amount which you will receive back from income tax department shall be lawful for you. You can use it in any of your needs. However, it should be noted that interest(giving in the possession of poor) money could only be given in such a charitable institution where that amount is spent on poor as a tamlik. You cannot give it to each and every charitable institution. 

    Allah (Subhana Wa Ta'ala) knows Best

    Darul Ifta,

    Darul Uloom Deoband, India