Unless there is money borrowed or debt incurred, provisions of TDS u/s. 194A are not attracted

A bare reading of s. 2(28A) would reveal that interest is payable in respect of ‘moneys borrowed’ or ‘debt incurred’. It, of course, would include a deposit, claim or other similar right or application of any service fee or other charges in respect of the moneys borrowed or debt incurred. All the subscribers/ members of the chit contribute moneys each month and bid takes place among the members. The highest bidder is entitled to take the chit, i.e. the money contributed by all the members, after deducting the bid amount offered by him. It is this bid amount which is dis...