Sec 269SS of Income Tax Act

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This query is : Resolved

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Section 269SS of the Income Tax Act does indeed apply to chit fund subscriptions, including advance payments. Even if payments are made in cash and aren't strictly loans or deposits, they are considered advance subscriptions and fall under the Act's purview. This also impacts how lump sums can be paid back to winners, especially if the chit is run under an official banner.

Gayu Gayu

Gayu Gayu (Querist)
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06 March 2023 Is Sec 269 SS is applicable for Chit Subscription ?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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06 March 2023 Yes, there is no exemption to chit fund.

Gayu Gayu

Gayu Gayu (Querist)
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06 March 2023 How Sir ? there are many members paid in cash, its neither loan nor deposits

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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06 March 2023 It is advance subscription, falls under deposit category.
At the same time you cannot pay lump sum back to winner, provided you are running the chit under any official banner.

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