My cousin who lives in India and normally NOT very well of he even take ZAKAT(I don’t know if was suppose to or not) he had a house which he sold and got Rs 9 lakhs and put that money in bank to earn interest. He in unemployed and has got 3 children 2 daughters and the son is still very young. I told him that your earnings are haram, plus you will to pay ZAKAT on your total amount you have in the Bank and the ZAKAT you use to get from other people can’t be collected because you have your own money, but the advice they got from someone locally is that since you have invested your money the BANK that interest is fine you can’t give your money to someone else and get interest from them. Please, clarify whatever I said to him is true that Interest is haram no matter where it comes from, plus he will have to pay zakat himself and he can’t take Zakat from anyone. Please, reply in detail so I can pass on to him and try and get him out of this.
بسم الله الرحمن الرحيم
Whosoever advised him to do so is wrong. It is haram to deposit money in banks for getting interest and use that interest in personal needs. It is also unlawful to receive zakah while he possesses 9 lakh rupees. In short, whatever you said to him for his reformation is alright, he should act accordingly.
Allah knows Best!
Darul Uloom Deoband