TDS on Interest on Chit fund
This query is : Resolved
CA HEMANTH
(Querist)
23 November 2009
Hi all Experts
I want know whether TDS we have deduct on Interest on Chit Fund or not. If yes then what percentage we have deduct and any circular for that pls reply.
thanks
Hemanth
CA Final article
I want know whether TDS we have deduct on Interest on Chit Fund or not. If yes then what percentage we have deduct and any circular for that pls reply.
thanks
Hemanth
CA Final article
C.A.Amitabh Gupta
(Expert)
23 November 2009
The amount disbursed by a chit fund company to the members from their contribution cannot be treated as `interest’; as the payments made/disbursed to the subscribers/ members are not `interest’, therefore, the question of deducting any tax at source therefrom would not arise; in the case of a chit fund, there is no borrowing of moneys nor any debt is incurred and as such the provisions of section 2(28A) are not attracted.
CASE LAW DETAILS
Decided by: HIGH COURT OF DELHI, In The case of: CIT v. Sahib Chits (Delhi)(P.) Ltd., Appeal No.: ITA No. 44 of 2008, Decided on: July 24, 2009
Rgds
CA Amitabh Gupta
Indore
09893276187
CASE LAW DETAILS
Decided by: HIGH COURT OF DELHI, In The case of: CIT v. Sahib Chits (Delhi)(P.) Ltd., Appeal No.: ITA No. 44 of 2008, Decided on: July 24, 2009
Rgds
CA Amitabh Gupta
Indore
09893276187
CA HEMANTH
(Querist)
23 November 2009
Thanks Mr. Amitabh Gupta
Hemanth
Hemanth
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