The Majlis Archive
Finance - Banking - Business The Majlis Vol 27 No 05, p.23

I have read in one of your articles that it is permissible to pay Income tax with Interest accumulated on Bank savings.

Question

I have read in one of your articles that it is permissible to pay Income tax with Interest accumulated on Bank savings. From our monthly salary, the income tax is automatically deducted before handing the salary over to us, and interest gets accumulated separately. For example, if we got Rs 500 as interest, and we have paid Rs 10,000 as Income tax, can we now use the Rs 500 in our bank account with the assumption of having paid Rs 9500 as tax from the salary and Rs500 as tax from Interest money?

Answer

When the employer automatically deducts from the „salary‟ of the worker whether for tax or some fees, then the actual salary in terms of the

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The Majlis Vol 27 No 05
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