Chit Fund Tax BenefitsThe purpose of any investment is to generate a return. However, without proper homework, without understanding taxation, optimal returns are not possible. This blog deals with taxation and chit fund tax benefits. Here’s our take on the various tax scenarios for investments in chit funds in general. 2 different kinds of people are involved – you, the subscriber and the foreman. Both have different sources of income. Read on further to know more about how chit funds and tax benefits go hand in hand.
Taxation on the amount received by the subscribersLet us explain through an example. If you are contributing Rs. 80,000 during the tenure and getting Rs. 90,000 from the chit Fund after the completion of the tenure, your income from the chit would be Rs. 10,000 only. The same would be your income for the purpose of Income Tax, taxable in the category ‘Other sources’. If your contr
Want to know the story of ChitMonks?A new monk has entered the market place whose identity is unknown to the public. He has successfully got some of the best Chit Fund companies onto one platform and is famously touted as the best online market place for Chit Funds. These are the minutes of the first public interview he has given- M: Who are you? ChitMonks: Hello everyone, my name is ChitMonks. I am a one stop solution to check all the available options in the Chit Fund Market. I am a neutral market place for promoting Chit Funds of Registered Chit Fund companies. Chit Fund is a very unique financial instrument helping all customer segments over several decades. By participating in a Chit Fund which is registered as per the Central Act and Governed b
Want to join a Chit Fund?
1) What is the "Chit Fund Funda"?Chit Funds are small groups which collect money pooled in monthly by members. Each month one member (winner member) gets to take the pooled in money. Reverse auction mechanism determines the winning member. It is the Jacques Kallis(an exemplary all-rounder) of financial instruments, Chit funds are a personal loan and a recurring savings tool both rolled into one.
2) Is Chit Funds a new concept?Not really. Though Chit funds haven’t been around since the Adam and Eve age, the scheme/instrument has been around for a while. Chit funds have been existing in India since before the word "bank" was coined. Villages, used it for the collection/ma
Demonetization and Chit Funds
Lot has been spoken, written, interpreted and forecasted on Currency Demonetization already. I was waiting on something to be written for Chit funds as well. I am going to attend one of the diamond jubliee celebrations of a chit fund association in Tamilnadu, where there will be veterans, academicians, politicians who will be talking about the impact, and how the registered Chit fund industry is gearing it up to take it further. Here are my 2 cents as to how demonetization will impact this industry.
While all of us love to earn money and spend it on our needs, growth and luxuries, we tend to move away from understanding some of the basic principles of money. Talking about Micro, Small and Medium Enterprises, or savers (employees) who are trying to grow their funds, everyone wants th
How do Chit Funds Work?Many articles and blogs / posts have been written across the .com but we would like to state it in our way here too. We at ChitMonks believe that Chit Fund is one very traditional but a unique financial instrument which acts like a group borrowing / savings platform, which allows you to borrow money while you started to save every month in the same group. This opportunity of raising money from the group works out to be very cheap compared to going for a borrowing upfront from other instruments out there in the market. No other financial instrument has this kind of advantage. This is the only instrument which combines both savings and borrowing capabilities which is not heavy on your pocket. If the subscribers can choose a good company and invest safely and stick to the rules of Chit Fund companies strictly, this can be a very wonderful financial tool. ChitMonks is one place where you will be able to get that
Important terms in Chit FundsAfter listening from customers who are asking about Chit Funds, we realized that about 80-90% of the customers are new to the concept. Hence this is an honest attempt to put forward all the terms that are used in general. So, please feel free to comment and let us know if you need anything in specific and we will be more than happy to assist you. Here are some of the key words which are generally used in the Chit Fund industry.
- Chit Value:Chit Value is the amount of Chit that you are subscribing to.
- Chit Duration :Number of months during which the Chit will be operated. It is always equal to the number of Subscribers.
- Subscriber :A member or subscriber is u