https://www.taxtmi.com/caselaws?id=34487 In a chit fund, the discount shared among subscribers is not "interest" because it is not paid in respect of money borrowed or debt incurred, and the arrangement does not create a debtor-creditor relationship. As the payment did not fall within section 2(28A), the obligation to deduct tax at source under section 194A did not arise, and the payer could not be treated as an assessee in default under section 201. The legal position leaves chit fund distributions outside the TDS net applicable to interest payments. en-us Fri, 24 Jul 2009 00:00:00 +0530 Fri, 12 Nov 2010 17:40:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=34487 In a chit fund, the discount shared among subscribers is not "interest" because it is not paid in respect of money borrowed or debt incurred, and the arrangement does not create a debtor-creditor relationship. As the payment did not fall within section 2(28A), the obligation to deduct tax at source under section 194A did not arise, and the payer could not be treated as an assessee in default under section 201. The legal position leaves chit fund distributions outside the TDS net applicable to interest payments. Case-Laws Income Tax Fri, 24 Jul 2009 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=34487