Does the interest gotten from a bank come under Sood? If there is no one to earn in the house, can we use this money?
In the opinion of the erudite scholars, in a non-Islamic country, if in a transaction between a Muslim and a non-Muslim, if the Muslim gets extra money without any cheating of any kind, then it will not be considered as interest.
Thus, accepting interest from an Indian bank, using it oneself or giving it to somebody else, paying income tax or even paying the school fees of children is permissible. As given in Hidayah, Vol. 3, Pg No. 86.
More details can be seen in the following Fatawa:
http://www.ziaislamic.com/English/Interfaces/fatawa_english/index.php?qid=103
http://www.ziaislamic.com/English/Interfaces/fatawa_english/index.php?qid=354&frommostrecent=yes
And Allah (Subhanahu Wa Ta’ala) knows best.
Mufti Syed Ziauddin Naqshbandi Qadri
[Professor, Islamic Law, Jamia Nizamia,
Founder-Director, Abul Hasanaat Islamic Research Center]