https://www.taxtmi.com/caselaws?id=151640 Amounts distributed to chit subscribers as dividend or discount under a chit scheme governed by the Chit Funds Act, 1982 are not interest. The chit arrangement is not a loan or deposit transaction, and the foreman only administers the scheme and earns commission from the discount. On that basis, the basis for deduction of tax at source under section 194A of the Income-tax Act, 1961 does not arise, and the consequential exposure under section 201 and section 201(1A) also falls away. en-us Mon, 20 Jul 2009 00:00:00 +0530 Tue, 11 Jun 2013 11:48:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=151640 Amounts distributed to chit subscribers as dividend or discount under a chit scheme governed by the Chit Funds Act, 1982 are not interest. The chit arrangement is not a loan or deposit transaction, and the foreman only administers the scheme and earns commission from the discount. On that basis, the basis for deduction of tax at source under section 194A of the Income-tax Act, 1961 does not arise, and the consequential exposure under section 201 and section 201(1A) also falls away. Case-Laws Income Tax Mon, 20 Jul 2009 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=151640