Whether 269SS is applicable in case of chit institutions??
soumya d prabhu (ernakulam) (73 Points)
14 October 2019
Whether 269SS is applicable in case of chit institutions??
3 Replies
Kapadia Pravin
(17259 Points)
Replied 15 October 2019
The plain reading of the section along with the Notes on Clauses is unambiguous in the intention of roping in all loans or deposits that are received otherwise than by account payee cheques or account payee drafts.
it's applicable to chit funds
( unless Government notified it under exception category.)
it's applicable to chit funds
( unless Government notified it under exception category.)
Suresh Thiyagarajan
(Student)
(3986 Points)
Replied 15 October 2019
1. Yes, accept with Pravin Ji. Any loans or advance or any other form of sum (in relation to the transfer of immovable property) if not made otherwise than by an account payee cheque or draft or through electronic clearing system will get hit by sec 269SS.
2. If such a Chit fund is specifically notified by the government for exemption of sec 269SS then it shall be excluded. Otherwise, all chit funds will be covered u/s 269SS of the act.
Please correct me if the above solution has an alternative view.
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