I need an advise in reference to interest income which earned by my tax retrun for the year 1998. I’m a resident of Dallas TX in USA and for some reason I didn’t get my tax return for the year 1998 in 1999. Last week I received a check from Internal Revenue Service for my 1998 tax return with interest included. Anyway, since I received my money and interest ($284.32)is included which I don’t want. My concern is what do I do with this interest income now. Should I return the interest to IRS? or Should I give this money (interest) to some needy people? Please advise me in this regard. May Allah give us reward. Aameen. Jazak Allah Khair
Interest monies must be given to the poor and needy who are eligible to
accept Zakaat without the intention of reward. However, interest received
from government institutes, eg. post office could be used to offset
government taxes. Interest received from private banks cannot be used to
offset taxes. It may be used to offset interest charged from the same bank.
and Allah Ta’ala Knows Best
Mufti Ebrahim Desai
FATWA DEPT.