I know interest obtained from Government banks can be used to pay income tax. My question is can the interest obtained from private banks be used for the same?
بسم الله الرحمن الرحيم
(Fatwa: 396/347/L=4/1439)
Paying income tax with interest money received from government banks is equal to returning the amount towards its owner; hence it is allowable to pay income tax with interest received from government banks. It is not the case with the private bank interest; hence it is not lawful to pay income tax with interest money received from the private bank.
قال فى الشامي: لأن سبيل الكسب الخبيث التصدق إذا تعذر الرد على صاحبه . (شامى: 9/553 ط: زكريا ديوبند)
Allah knows Best!
Darul Ifta,
Darul Uloom Deoband