A smart way to save and invest for a better financial future.
A chit fund is a rotating savings and credit association system. It allows a group of individuals to contribute a fixed amount monthly, and one member receives the pooled sum each cycle through a bidding system.
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Yes, it is good as we lend money with low interest rate.
No, it is neither taxable nor tax deductible.
Amount calculated per month = 20 * 1000 = 20000. This is known as the chit amount. The first bidding starts after the first month's payment is received.
The person who bids for the lowest amount by offering the highest discount wins the bid.
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