Applicability of Sec 269SS & Sec 269T


This query is : Resolved 

Quick Summary
This discussion clarifies the applicability of Sections 269SS and 269T of the Income Tax Act to chit fund companies. While cash subscriptions exceeding Rs. 20,000 may attract Section 269SS as they can be considered deposits, Section 269T is generally not applicable to chit fund companies, as it primarily applies to individuals.

(Querist)
08 October 2020 Dear Sir,

x pvt ltd, is a chit fund company. It is collecting the subscription from members towards the fund. Please guide.
1. Subscription received from the members is a loan, Advance or Specified sum u/s 269SS.
2. The members have subscribed in cash exceeding Rs. 20,000. Whether section 269SS is applicable for Chit fund company.
3. Sec 269T is applicable for chit fund.

guide.

regards,

R. Gurucharan.

08 October 2020 1 and 2 269ss attracted as it will be considered as deposit.
3 Not applicable to chit fund companies. Applicable only to individual.

r gurucharan (Querist)
08 October 2020 Thanks for the support.


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