Title: Interest and Insurance

Question: I am a state govt employee of Odisha. Can I use interest money received from L.I.C ,India in lieu of Annual Income Tax which is directly deducted from my salary in the month of February every year? (So it will be assumed that the interest money received from L.I.C is being used for payment of Annual Income Tax)

Answer ID: 170729Posted on: Sep 1, 2020

Bismillah hir-Rahman nir-Rahim !

(Fatwa: 824/733/SD=09/1440)

If the LIC is a government company then you may use interest received from LIC equal to the deducted amount in income tax. It is allowable.