The amount disbursed by a chit fund company to the members from their contribution cannot be treated as `interest'; as the payments made/disbursed to the subscribers/ members are not `interest', therefore, the question of deducting any tax at source therefrom would not arise; in the case of a chit fund, there is no borrowing of moneys nor any debt is incurred and as such the provisions of section 2(28A) are not attracted.
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