Have questions on your mind? We’ll do our best to answer them!
A chit fund is a group savings plan where a set of members contribute a fixed
amount every month into one common pool (often called the chit value or pot). Each month, an auction is
conducted. Members who want the payout can bid by offering a discount on the chit value. The member who
offers the highest discount becomes the prized subscriber and receives the payout for that month. Prize
amount = Chit value − Auction discount. A small percentage is kept as the foreman’s commission (as per the
chit terms). The remaining discount amount is shared among all members as a dividend, which typically
reduces the next month’s payable installment. This monthly cycle continues until every member has received
the prize amount once. Note: If you win early, you still continue paying installments for the remaining
months, as per the agreement.
Yes. We operate as per applicable laws and regulatory requirements, and our
chits are run under the oversight of the concerned authorities as per the Chit Funds Act, 1982 and related
rules.
Your payments are handled through defined processes and documented records, with
transparency maintained across the chit cycle. We follow proper procedures to ensure the system remains
clear, accountable, and subscriber-friendly.
Any eligible individual who completes the required KYC and meets basic criteria
can join. We welcome salaried employees, business owners, and self-employed professionals - plans can be
chosen based on comfort and goals.
If an installment is delayed, late charges may apply as per the chit agreement.
If delays continue, the member may face further action as permitted under the terms - this is to protect
the fairness and interests of the entire group.
The prize amount is awarded monthly to one member through the auction process.
Once you win and complete the required formalities (including KYC and any documentation as per chit
rules), the payout is processed promptly as per the company’s disbursement procedure.
Tax treatment can vary depending on your overall income and situation.
Dividend-related income may be taxable in some cases under applicable provisions of the Income Tax Act.
For a clear answer for your situation, it’s best to consult your tax advisor/CA.
The Foreman is the organizer of the chit - typically the chit company -
responsible for managing the group, conducting the auction, maintaining records, and ensuring the chit
runs as per the agreed terms.