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  • How To Dispose Interest In Savings Accounts?

    Posted by Zakir Hossain on April 21, 2024 at 7:09 am

    In India as there is no banking system as per Islamic Sharia. People who are government servants receive their salaries in savings account in the banks which also gives them interest on these deposits. How can one avoid taking these interests? Whether these interests received can be adjusted while paying Income Tax?

    Secondly, Ghamidi Sb. has explained that it is because of ‘zulm’ taking of Riba is prohibited. Here, there is no ‘zulm’ from either side, hence how does the concept of Riba fit in this case?

    Faisal Haroon replied 1 month, 3 weeks ago 2 Members · 3 Replies
  • 3 Replies
  • How To Dispose Interest In Savings Accounts?

    Faisal Haroon updated 1 month, 3 weeks ago 2 Members · 3 Replies
  • Faisal Haroon

    Moderator April 21, 2024 at 3:52 pm

    I am not sure about India, but in most banks around the world you can open up non-interest bearing accounts. If that’s not a possibility in your case, you can give the interest received to a needy person. There is no tax adjustment.

  • Zakir Hossain

    Member April 23, 2024 at 3:59 am

    Thanks for your clarification. Also, please comment on the ‘zulm’ part of the Riba and where/how does it fit in this case. If it doesn’t, does it mean that apart from the ‘zulm’ factor, other factor(s) may weigh in to classify an activity as ‘Riba’?

  • Faisal Haroon

    Moderator April 23, 2024 at 4:30 pm

    The money paid by the bank to you as interest is earned by them through riba in loans that they make to others. Any share in this money is therefore not allowed.

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