Chit funds, Chit funds Services,Chit funds Service Providers

1. Last date of filing the belated return is 31st March 2009 and beyond which the return would attract a penalty of Rs. 5,000/-

2. For the Assessment Year 2009-10 last date for filing the return of Income is 30th September for the assessee whose accounts are audited or the assessee is a Company. In other cases 31st July.

3. Income Tax Rate for the Assessment Year 2009-10 (For Individual Man and HUF) * 1.5 Lakh to 3.0 : 10% * 3.0 to 5.0 : 20% * 5.0 to above : 30% Except (For Individual Woman) * 2.25 to 3.0 : 10% (For Senior Citizen) * 3.0 to 5.0 : 20% * 5.0 to above : 30% + Education Cess 2% + S.H.E.C 1% (Surcharge 10% if income is more than 1 crore)

4. Firms and Domestic Company : 30% + Education Cess 2% + S.H.E.C 1% (Surcharge 10% if income is more than 1 crore)

5. Banking Cash Transaction Tax has been withdrawn after 31st March 2009.

6. Interest on borrowed capital paid during the previous year for a residential house is deductible upto Rs. 1,50,000 ( One Lakh Fifty Thousand Only ).

Wealth Tax
» 1% of the amount by which net wealth exceeds Rs. 15,00,000/-.

Gift Tax
» No tax if gift is upto Rs. 50,000/- from any person.

Service Tax
» Upto Rs. 10 Lakhs there is no service tax liability.

» The annual turnover limit for obtaining registration has been increased from 7 lakh to 9 lakh w.e.f. 1st April, 2008.

Sales Tax
» C.S.T. Reduced to 2% from 3% w.e.f. Ist June, 2008

Direct Taxes
» Short-term capital gains tax hiked to 15% o Securities Transactions Tax unchanged.

» Threshold exemption limit increased from 1,10,000 to 1,50,000 o Exemption limit for women increased to 1,80,000 o Exemption limit for senior citizens up from 1,95,000 to 2,25,000. New Tax Slabs for Assessment Year 2009-10.

» 1.5 lakh to 3 lakh: 10% o 3 lakh to 5 lakh: 20% o 5 lakh and above: 30% Indirect Taxes.

About R.C.N. Chits Private Limited

Why Subscription In Chits Fund

Today, in this world financial planning is must for everyone to force any contingencies in life either that is related to business or otherwise. Housing, Education, Marriage and traveling all have become finance intensive. Many events like buying of house, a marriage, education of children are certain but the timing is not certain, therefore planning must be done accordingly. When the capital outflow is at large level, then chits offers flexibility of breaking this level into small levels.

The person who are not working i.e. ladies or senior citizens and has regular source of income, they may subscribe to chits. Subscribing to chits is akin to creating a Generalized Contingency Reserve which may be liquidated in case of any business or Social Contingency, Target money is not bound by end-use considerations. The biggest advantage that the institution of chits fund has to offer is that you can plan in advance for any forthcoming capital outflow even if you are not aware about the exact timing of such outflow.

Benefits Of Subscribing A Chits Fund

Chits Schemes are organized on a personal basis and have lesser stringencies involved. Decision-Making is comparatively faster. The income from chits scheme compare favorably with the incomes from bank scheme in many cases. Liquidity is compromised when you make a Fixed Deposit or join a Recurring Deposit scheme. You may get a loan up to 75% of your deposits. In chits, the prize amount is always more than the amount of deposits made in the chit.

Bank Scheme and Chit Scheme are two absolutely different financial instruments offering benefits in their own different ways. Chits Scheme are unique and may not be exactly comparable. Further, the interest receivable under Fixed Deposit or any Scheme of bank is fully taxable (i.e. TDS Compliance is there) but the prize money to be distributed does not fall under the purview of Income Tax Provisions.