Chit loss
This query is : Resolved
06 August 2011
sir,
i taken chit from chit fund company and i lift the amount before complettion of the total chit installments.how to account chit loss( total chit value - lifted amount)in books of account? whether it is treated as chit loss or interest ? clarify
i taken chit from chit fund company and i lift the amount before complettion of the total chit installments.how to account chit loss( total chit value - lifted amount)in books of account? whether it is treated as chit loss or interest ? clarify
06 August 2011
chits are unaccounted type of speculation, no such provision to claim such loss.
06 August 2011
Sharma Ji
Question is accounting of chit loss. Answer is claiming of loss. In the matter of claiming loss, if the bid amount is accounted in books and utilized for business purposes and the installments are also booked, the loss arising therefrom is business expenditure.
Citation :- ASSISTANT COMMISSIONER OF INCOME TAX vs. K.S. SHETTY & CO.
(2003) 81 TTJ (Chennai)(SB) 158.
Question is accounting of chit loss. Answer is claiming of loss. In the matter of claiming loss, if the bid amount is accounted in books and utilized for business purposes and the installments are also booked, the loss arising therefrom is business expenditure.
Citation :- ASSISTANT COMMISSIONER OF INCOME TAX vs. K.S. SHETTY & CO.
(2003) 81 TTJ (Chennai)(SB) 158.
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