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TAX exemption FOR amount taken from chit funds

TDS 911 views 1 replies

suja pirama

134 Points Joined October 2015

SIR

my friend has joined a chit fund 1 year back now she is taking the chit rs 20,00,000 to close her housing loan. they are deducting tds for the same from chit funds. can we claim refund for the tds deducted by the chit funds. what is the taxability regarding this. this is actually a 5 yrs chit scheme. now it is only the second yr running.thank you

Replies (1)

Kiran Hathalia

837 Points Joined June 2017

Income received from chit funds are not exempt but is taxable under the head income from other sources. First you show the income and then claim the TDS on such income. In case of loss from chit funds, the same can be claimed as a business loss.