If one has mixed up haraam money with halaal money and has used of it, what should be done?

Answer

It is Waajib to return the haraam money to its owner if this is possible.

If not possible, then it is Waajib to give it to charity without a niyyat of thawaab. If the haraam money became admixed with halaal money, then the amount of the haraam must be taken out and disposed of as mentioned above. If the haraam money is bank interest, it may be used for taxes. If it is stolen money, it has to be returned to its owner if this is possible. If the owner or his heirs cannot be traced, the money should be given to charity without niyyat of thawaab. If it is money gained from gambling, it may not be used to pay one's taxes. It must be given to charity.