Registration of chit fund company maharashtra law group. The law governing and regulating the business of chit fund in india is the indian chit fund act, 1982 herein after referred to as the act. Chit funds act, 1982 bare acts law library advocatekhoj. Tamil nadu tamil nadu chit funds act, 1961 karnataka. Balussery provides chit funds services in mumbai,a central location with easy access to sionmatunga kings circle and koliwada stations and very close to sion bus depot, it soon entered the heart of the people of aamchi mumbai and across part ofmaharasthra, check our monthly schemes and plans. Air prevention and control of pollution act, 1981 10. The chit funds act, 1982 was enacted to provide for the regulation of chit funds and for matters connected therewith. Amended chit fund act brings tighter norms, transparency. The economic offences wing eow of the state crime branch on tuesday arrested the managing director of a chit fund company from delhi on charges of duping investors of nearly rs 5 crore. Notification under chit funds act, 1982 appointments. The different acts governing the chit funds in india are. Section 2b of the under chit fund act 1982 defines chit as. The chit funds act 1982 in india bare acts, banking and insurance, business and corporate, constitutional, consumer laws, criminal law, energy, environmental, family and inheritance, heritage and national importance, immigration law, labor law, the chit funds act 1982 national security, others, procedural and administration, property related, public utilities, shipping laws, tax laws. Section 4 1 of the chit funds act, 1982 which states that no chit shall be commenced or conducted without obtaining the previous.
In exercise of the powers conferred by subsection 3 of section 1 of the chit funds act. A chit fund company means a company managing, conducting or supervising, as foremen, agent or in any other capacity, chits according to section 2b of the chit fund act, 1982, chit means a transaction whether called chit, chit fund, chitty, kuri or by any other name by or under which a person enters into an agreement with a. Union government chit funds act 1982 ex cept the state of jammu and kashmir new delhi. A chit fund is a very popular type of savings scheme in india it is one of the main parts of the unorganized money market industry. Offer the dividend you receive from month to month to tax. In the chit funds act, 1982 central act 40 of 1982. Chairman and managing director of samruddha jeewan group, motewar has been under arrest for. Any person or company intends to carry chits business shall obtain prior sanction order p. An act to provide for the regulation of chit funds and for matters connected there with. The estimated turnover of registered chit companies all over india as of now is exceeding rs 35,000 crores per annum. Chit funds in india are governed by various state or central laws. In india, the chit funds are governed regulated by. Chit funds in india are governed by the chit funds act, 1982. Subsection 3 of section 1 of the act, inter alia, confers powers upon the central government to appoint different dates for commencement of the said act for different states.
It extends to the whole of india except the state of jammu and kashmir. Get name, address and contact details for chit funds in maharashtra, india. Government of kerala taxes c department notification g. Offer the difference between the amount you paid and the amount you received to tax if the amount received by you is greater than the amount you paid. Under this act, the chit fund businesses can be registered and regulated only by the respective state governments. Chit funds act, 1982 tamil nadu chit fund rules, 1984.
In the setting up of a typical chit fund, two primary tasks existone, to evaluate the credit worthiness of prospective clients and, two, assess the borrowing and saving requirements of the prospective clients so that liquidity is provided optimally throughout the duration of the scheme. The chit funds act 1982 indian bare acts india bare act. Foreman of chit fund clause 23a being inserted by finance bill, 2015 w. All india council for technical education act, 1987. The chits funds act,1982 statement of objects and reasons 1a.
Organised chit fund schemes are required to register with the registrar of firms, societies and chits. Airports economic regulatory authority of india act, 2008 12. A chit fund is a kind of savings scheme practiced in india. Chit fund act1982 is a central act to provide for the regulations of the chits fund business and for the matters related thereon. Chit fund companies are governed by chit fund act 1982 and rbi has specifically exempted from its core provisions. I an act to provide for the regulation of chit funds in the pstae of tamil nadu. The dominant purpose of the act is to regulate the chit and control the activity of the foreman and protect the interests of the subscribers. Regulator of chit funds is the registrar of chits appointed by respective state governments under section 61 of chit funds act. Chit means a transaction whether called chit, chit fund, chitty, kuri or by any other name by or under which a person enters into an agreement with a specified number of persons that every one of them shall subscribe a. Appointment of authorities under chit fund act, 1982. Be it enacted by parliament in the thirtythird year of the republic of india as follows. Central chit fund act chit fund companies bangalore.
Agricultural and processed food products export cess act, 1985 9. Maharashtra maharashtra chit fund act 1975 companies whic h have cheated and run off with. The chit funds karnataka rules, 1983 andhra pradesh the andhra pradesh chit funds act, 1971 new delhi the chit funds act,1982 and delhi chit funds rules, 2007 maharashtra maharashtra chit fund act 1975 some chit funds may be conducted as a savings scheme for specific purpose. Union government chit funds act 1982 except the state of jammu and kashmir new delhi. Under the act, the central government can choose to notify the act in different states on different dates. Maharashtra chit funds act, 1974 complete act bare act. The chit funds act, 1982, is within the leigislative competence of the parliament. Other similar names to chit fund are chitty or kuri. It is a sort of a savings scheme practised in india.
Let us understand how the chit fund companies or the committee works and will then proceed to how the company is registered in terms of chit fund act. According to a report of asian development bank, the turn over of some 1066 chit fund companies, as far back as 1986 was, an astounding rs. This act will extends to whole of india except the state of jammu and kashmir. Under the act chit fund act department of goods and. A chit fund company is a company that conducts, manages, or supervises such a chit fund. Short title, extent and commencement 1 this act may be called the chit funds act, 1982. Some alone, get the price money without obligation of paying future installments. Received the assent of the president on the 22nd june 1 961. Chit funds as an innovative access to finance for lowincome households 15 in case of default or delayed payment, the chit fund organizer has to put up the liquidity on. Below are the important findings and must known points of the chit fund act 1982. The chit funds act,1982 and delhi chit funds rules, 2007 maharashtra.
Chit funds act, 1982 in 1982, the ministry of finance enacted the chit funds act to regulate the sector. An act to provide for the regulation of chit funds and for matters connected therewith. Accordingly, as per section 2j of the chit fund act. In exercise of the powers conferred by subsection 3 of section 1 of the chit funds act, 1982 40 of 1982, and subsection 2 of section 1 of the chit funds amendment act, 2001 10 of 2001, the central government hereby appoints 15th june, 2004, as the date on which the said provisions of those acts shall come into force in the state. Organised chit fund schemes are required to register with the registrar or firms, societies and chits. Whew it is expedient to provide for the regulation of. According to section 2b of the chit funds act, 1982. A chit fund company is a company that manages, conducts, or supervises such a chit fund, as defined in section of the chit funds act, 1982. It shall come into force on such date as the central government may, by notification in the official gazette, appoint, and different dates may be appointed for different states.
Financial intelligence unit india, ministry of finance, govt. These changes have become operative from the beginning of this year. In exercise of the powers conferred by section 89 of the chit funds act, 1982, central act 40 of 1982, the government of. Be it enacted by the karnataka state legislature in the fiftyeighth year of the republic of india as follows. Praveen athanki there two methods to offer the income from chit fund to incometax. The chit funds act, 1982 and delhi chit funds rules, 2007 maharashtra. Delegation of powers to compound offences under chit fund act, 1982. Copies of chit agreement to be given to subscribers. Chit fund companies are widely famous with their name known as committee. Pdf chit funds as an innovative access to finance for. Chit funds act 1982 defines a chit fund company as a company which conducts, manages and supervises a chit fund scheme. Now chit funds are trying to carve out a cleaner identity, a campaign that culminated in a slew of amendments to the chit fund act.
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