Question Summary:
Mufti Saheb I would like to know if I can use Interest Money to build a toilet in the Madrasah.

Question Detail:

Mufti Saheb I would like to know if I can use Interest Money to build a toilet in the Madrasah.
I am running a Madrasah in a rented house and the owner has given me permission to re-build the toilet from high pan to low pan so can I use Interest money to build the toilet.
And what is the rulling of Good Will in Islam , are we allowed to take Good Will.

Answer :

In the name of Allah, Most Gracious, Most Merciful
Assalaamu `alaykum waRahmatullahi Wabarakatuh
The money that was received as interest should be returned to where it came from and if that is not possible then it should be given to the poor and needy. However, interest received from government institutions can be used to offset government taxes imposed on one. Interest received from private banks cannot be used to offset taxes; however, it can be used to offset interest charged by the banks.  It is not permissible to re-build the toilets of a madaresah using money that was attained through interest.
Please clarify what you mean by good will in order for us to be able to comment on this issue.  
 
وإنما الذي يجب حقا للشرع رد عين الربا إن كان قائما لا رد ضمانه.
(البحر الرائق، 6/125، رشيديه)
(Fatawa Mahmoodiya, 16/383-386, Farooqiyah)
And Allah knows best
Wassalamu Alaikum
Ml. Sajid bin Shabbir,
Student Darul Iftaa
Checked and Approved by:
Mufti Ebrahim Desai
Darul Iftaa, Madrassah In'aamiyyah