Question: I want to know about the legality of prize-bonds? Are they allowed in Islam. If they are, then how should I pay on them?

   Answer: Money earned through prize-bonds is not an allowable in Islam. When you buy a prize bond you basically lend money to the government and the gain you get on it is actually amounts interest since it is the fixed return you get on this loan.
    Moreover, it also carries the spirit of gambling in it since a person actually chances his luck in this enterprise.