Question ID : 42193

Whether 269SS is applicable for Chit Funds company?

Whether 269SS is applicable for Chit Funds company is applicable for subscription amount received and paid in excess of Rs 20,000/- in cash from members of Chit regardless of prize money

According to the provisions of section 269SS of the Income Tax Act, the person cannot take/ accept, the amount of loan/ deposits/ specified sum is INR 20,000 or more; remaining unpaid as on the date of taking/ accepting new loan/ deposits/ specified sum. Notably, provision of section 269SS is not applicable to any loan/ deposit/ specified sum taken or accepted from or any loan/ deposit/ specified sum taken or accepted by the following – 1. Account payee cheque; 2. Account payee bank draft; 3. Via electronic clearing system through a bank account; 4. Other electronic modes as specified under rule 6ABBA of the Income Tax Rules –