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Using interest earned on savings to pay taxes in India

Answered as per Hanafi Fiqh by ShariahBoard.org

Assalamualaikum,

1.       Can I use the INTEREST earned on money in my SAVINGS bank account in a PRIVATE bank to pay TAXES?

2.       Can I use the INTEREST earned on money in my SAVINGS bank account in a GOVERNMENT bank to pay TAXES?

3.       Can I use the INTEREST earned on money in my PROVIDENT FUND (PF) account to pay TAXES?

4.       Can I use the INTEREST earned on NATIONAL SAVINGS CERTIFICATE BOND to pay TAXES?

Kindly reply to the above queries as early as possible. 

Jazakallah Khair

الجواب وباللہ التوفیق

  1. It is necessary to give the interest received on the amount deposited in the non-government private banks to the poor, it is not correct to use it to pay the taxes.
  2. The interest received on the amount deposited in the government banks can be used to pay those government taxes through which no benefit is derived from the government, e.g., income tax, sales tax, etc. However, it is not correct to use it to pay those government taxes through which benefit is derived from the government, e.g., water tax, road tax, electricity tax, etc.

In the P.F. Fund one amount from the government is personal and the other is the prize money. It is permissible to receive it and use it. Other than the prize money if any interest money is received the ruling for its use is the same as described in # 2 above.

صرح الفقہاء بأن من اکتسب مالاً بغیر حق، فإما أن یکون کسبہ بعقد فاسد، کالبیوع الفاسدۃ والاستئجار علی المعاصي والطاعات، أو بغیر عقد، کالسرقۃ والغصب والخیانۃ والغلول، ففي جمیع الأحوال المال الحاصل لہ حرام علیہ، ولکن إن أخذہ من غیر عقد ولم یملکہ یجب علیہ أن یردہ علی مالکہ إن وجد المالک، وإلاَّ ففي جمیع الصور یجب علیہ أن یتصدق بمثل تلک الأموال علی الفقراء۔ (بذل المجہود، کتاب الطہارۃ / باب فرض الوضوء ۱؍۳۵۹ مرکز الشیخ أبي الحسن الندوي مظفرفور أعظم جراہ)

واللہ اعلم بالصواب

This answer was collected from Shariahboard.org. It was established under the supervision of the eminent faqih of our era, Hazrat Shah Mufti Mohammed Navalur Rahman damat barakatuhum.

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