Question 1

13. What are the Income Tax benefits from saving or borrowing?

Prashant Reddy · Accepted Answer

The dividends earned in a chit are not taxable. If you want to claim the bid as loss then these dividends has to be shown as revenue income in the assessment. Hence the entire dividend earned in a chit is not taxable if you don't claim the bid amount as loss.

Question 2

13. What are the Income Tax benefits from saving or borrowing?

Prashant Reddy · Accepted Answer

The dividends earned in a chit are not taxable. If you want to claim the bid as loss then these dividends has to be shown as revenue income in the assessment. Hence the entire dividend earned in a chit is not taxable if you don't claim the bid amount as loss.