TAX exemption FOR amount taken from chit funds

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