Is the amount that we invest in chit funds monthly taxable?

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Dear All,

I am a businessman based in Hyderabad.

I have recently joined a chit group in margadarsi chit funds pvt ltd.

My query is that, the amount which i will be investing monthly in the scheme is taxable as profit from business and investment in chits? Or just the difference in total amount what i invested and what i will receive on completion will be liable for taxation?

Also i would like to know how to show the investment amount in my income tax returns?

Waiting for an early reply.

Thanks & Regards.

 

 

Replies (4)

" the amount which i will be investing monthly in the scheme is taxable as profit from business and investment in chits?" 

If it is out of your savings/capital/already tax paid amount......... than it will not be taxable.

"Or just the difference in total amount what i invested and what i will receive on completion will be liable for taxation?"

Yes, that is correct.

"Also i would like to know how to show the investment amount in my income tax returns?

In Schedule BS, under investment, provided you need to file ITR3. Otherwise in ITR1, ITR2 or ITR4 there is no option.
 

Dear Dhirajlal Ji.. Thanks for the reply. But could you please elaborate this.? If it is out of your savings/capital/already tax paid amount........ than it will not br taxable.
Originally posted by : Dhirajlal Rambhia

If it is out of your savings/capital/already tax paid amount......... than it will not be taxable.

Dear Dhirajlal ji.. This amount will be paid through my current account. So will it be taxable?

The amount will be taxable under head PGBP, as per P&L acc. of your business/profession.

The same will be treated as capital invested in chit, once accounted under P&L acc.

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