Section 269st

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

15 April 2017 Dear Experts How ill section 269 ST apply to the chit fund compnay. Chit fund company collects monthly instalemets from the customers in both cash and credit. For a single customer if it collects Rs 25,000 monhtly due in cash and For the entire chit duration it collects Rs 5 lakhs in 20 months in cash, Will there be Section 269ST violation or not. Please Help

CA Shubhanshu Jain

CA Shubhanshu Jain (Expert)
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16 April 2017 There is no violation of section 269ST because

269ST prohibits following :
Receiving of more than 2 lakhs
* In aggregate from a person in a day; or
* In respect of single transaction

since chit fund company is receiving only 25000 from its customers which is less than 2 lakhs so there is no voilation.