07 September 2012
Dear all i have received an amount of rs 630000 in cash from Tirupura chit fund co ltd but my auditor ojecting the same and the tirupura people saying that they don't have any problem to do the same and its in routine practice to them now please tell me can we take that amount into account if yes then please tell me under which section this kind of exemption can be taken please help me
08 September 2012
Sir, From query one can come to an conclusion that you are part of a chit group.If the chit fund has registered your chit group then as per Chit funds act of the respective state or as per Indian chit funds act the chit amount must be paid in cheque only.If you have received the amount in cash that means that your chit group is unregistered and its a black money chit. If you have shown the payments in your affairs or in accounts you can show the 6.3 lakhs in your accounts else you decide
CAclubindia
