https://www.taxtmi.com/caselaws?id=57058 Subscriptions collected under a chit fund scheme were not treated as deposits because they were non-refundable contributions to the common fund, not amounts received with an obligation of repayment to the subscriber. On that basis, a chit fund company governed by the Chit Funds Act, 1982 did not fall within the definition of a credit institution or a residuary non-banking company under the Interest Tax Act, 1974. The RBI framework was also noted as excluding chit subscriptions from the concept of deposit, and the regulatory directions for residuary non-banking companies did not support bringing such a company within the Act. Accordingly, interest on loans was not chargeable to tax under the Interest Tax Act. en-us Thu, 29 Jul 2004 00:00:00 +0530 Wed, 08 Dec 2010 11:50:57 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=57058 Subscriptions collected under a chit fund scheme were not treated as deposits because they were non-refundable contributions to the common fund, not amounts received with an obligation of repayment to the subscriber. On that basis, a chit fund company governed by the Chit Funds Act, 1982 did not fall within the definition of a credit institution or a residuary non-banking company under the Interest Tax Act, 1974. The RBI framework was also noted as excluding chit subscriptions from the concept of deposit, and the regulatory directions for residuary non-banking companies did not support bringing such a company within the Act. Accordingly, interest on loans was not chargeable to tax under the Interest Tax Act. Case-Laws Income Tax Thu, 29 Jul 2004 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=57058