Assalam-u-alaikum I work for a private organization in India, as per the goverment regulations,Tax is deducted from our salary and submitted to goverment. I want to understand If I can pay the taxes to the goverment with the interest amount received from the goverment banks on my income.
Also while I was going through the different fatwas, I came across the fatwa No 31116, 25985, 18037, specifically fatwa 18037 says “Interest received from government institutions can be used to offset government taxes imposed on one”. Can you please help to clear my doubt about this whereas the other fatwa strictly prohibit use of interest amount.
In the Name of Allah, the Most Gracious, the Most Merciful.
As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh
In principal, one should return the interest money accrued from one’s bank account to it’s owner. However, if that is not possible, then the interest money accrued from the bank should be expended on the poor and needy (who are the valid recipients of Zakaat whether they are Muslim or non-Muslim) without the intention of receiving any reward since such money is tainted.
With regards to your specific question, you state that tax is automatically deducted from your salary and submitted to the government. In principle, one may pay government taxes with interest funds accrued from government accounts such as government retail bonds and State deposit accounts.
And Allah Ta’ala Knows Best
This answer was collected from Askimam.org, which is operated under the supervision of Mufti Ebrahim Desai from South Africa.