Transactions & Dealings >> Interest & Insurance

Question ID: 58980Country: India

Title: income tax and bank interst

Question: (1) Is it lawful to pay income tax by the amount received as interest on bank savings? (2) I have taken a credit card from bank by which I can take loan from bank for 40 days and if I pay it back within 40 days I will not be charged any interest. Bank takes only charges of this facility say Rs 500/= per annum. Is this transaction lawful?

Answer ID: 58980Posted on: Sep 1, 2020

Bismillah hir-Rahman nir-Rahim !

(Fatwa: 381/381/SD=07/1436) (1) Yes, it is allowable to pay income tax with interest money. (2) If no interest charge is levied then it is allowable to transact with credit card.

Allah (Subhana Wa Ta'ala) knows Best

Darul Ifta,

Darul Uloom Deoband, India

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Title: income tax and bank interst

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