Chit Funds Act 1982 (Bare Act with Section Notes) - Book By Taxmann

Edition : 2027

Chit Funds Act 1982 [Bare Act with Section Notes] by Taxmann is a single-volume working Edition of the Chit Funds Act 1982, as amended in 2001 and 2019, with its Schedule of account forms. The statutory text is freely available; what this book supplies is the apparatus around it—Section Notes under nine sections; Case Laws that summarise ten rulings under seven sections; footnotes that record the commencement of the Act State by State, the amending laws and the earlier wording; the Karnataka amendments; and a Subject Index.

The book solves a practical problem. Anyone who runs, joins, regulates or litigates over a chit has to piece together five things:

• The Chit Funds Act 1982, with the changes made by the Amendment Acts of 2001 and 2019
• The notifications that brought the Act into operation, State by State
• The wording the amendments replaced, such as 'prize amount', 'chit amount' and 'dividend'
• The Karnataka amendments to the provisions on appeals and delegation
• Court rulings on the reach of the Act, consumer forums, previous sanction, defaulting subscribers, awards, State rules and the repealed State Acts

This volume brings them together: it prints the notes and rulings below the sections they explain, the commencement and amendment history in footnotes, the Karnataka amendments after the sections they change, and a Subject Index after the Schedule.

This book is intended for the following audience:

• Chit Fund Companies and Foremen who conduct chits, with notes 4.1 to 4.5 on the previous sanction for a chit and notes 12.1 and 12.2 on other business of a chit company
• Subscribers and Their Advisers who join or dispute a chit, with the ruling under section 2 on subscribers as consumers, the Supreme Court ruling under section 32 on consolidated payment by a defaulting prized subscriber, and note 5.1 on what a public invitation to subscribe must state
• Registrars of Chits and State Officials who sanction, register and inspect chits, with the footnote that lists the commencement notifications, State by State, and the Karnataka amendments on appeals to a notified officer or authority
• Advocates and Arbitration Counsel who handle disputes referred to the Registrar under section 64, with the Supreme Court ruling on executing an award against a guarantor and the rulings under section 89 on arbitration fees and copies of awards
• Company Secretaries and Compliance Officers who look after a chit company's capital, reserve fund and filings, with notes 79.1 to 79.3 on offences by companies and the liability of directors and officers
• Chartered Accountants and Chit Auditors who prepare or audit the balance sheet and the profit and loss account under section 24, with the two Forms printed in Parts I and II of the Schedule
• Magistrates and Prosecutors who deal with offences under the Act, with notes 76.1 to 76.3 on penalties, note 77.1 on second convictions, note 78.1 on applying a fine to the costs of the proceedings, and notes 80.1 and 80.2 on cognizable offences and the court that may try them
• Law Students and Researchers who study the law on chit funds, with notes 2.1 to 2.6 on six definitions, including the three terms added in 2019, and the rulings on the reach of the Act and the repealed State Acts

The Present Publication is the 2027 Edition, covering the text of the Chit Funds Act 1982 [Act No. 40 of 1982], with the law stated as updated till 15th September 2026. It has the following noteworthy features:

• [Section Notes – The Core Editorial Feature] Section Notes are printed under nine sections, with twenty-nine numbered notes. Under section 2, notes 2.1 to 2.6 set out six definitions, including 'gross chit amount', 'net chit amount' and 'share of discount'. Under section 4, notes 4.1 to 4.5 split the previous sanction into its parts—sanction and registration, the lapse of a sanction, the application, the grounds of refusal, the hearing, the finality of orders and the appeal. Further notes deal with public invitations to subscribe (section 5), other business of a chit company (section 12) and the offence provisions in sections 76 to 80
• [Case Laws] Case Laws under seven sections summarise ten rulings, three of the Supreme Court and seven of the High Courts of Kerala, Andhra Pradesh, Karnataka and Madras, reported from 1989 to 2021. They deal with the commencement of the Act in Kerala, service tax and consumer forums, previous sanction, consolidated payment by a defaulting prized subscriber, the execution of an award against a guarantor, rules made by the States, and chits begun under the repealed State Acts
• [Footnotes] Forty-eight footnotes record the commencement of the Act in thirty-one States and Union territories, from 1984 to 2018, with notification numbers and dates, and the changes made by the Chit Funds (Amendment) Acts of 2001 and 2019. They give the words and money limits that were replaced, reproduce the clauses and the section that the 2019 Act omitted or substituted, and point from the Companies Act 1956 to the Companies Act 2013
• [Schedule] The Schedule, under section 24, prints the Form of Balance Sheet in Part I, with thirteen heads of liabilities and fourteen of assets, and the Form of Profit and Loss Account in Part II, with twelve heads of expenditure and eight of income. Footnotes mark the places where the 2019 terms replaced the earlier ones
• [Karnataka Amendments] The Karnataka amendments to sections 70 and 84 are printed after the sections they change, with the sub-sections they insert reproduced word for word and the amending Act and its date noted
• [Research Tools] A five-page Contents list sets out the thirteen Chapters, the ninety sections and the Schedule, with page references. A four-page Subject Index of fifty-two entries and eighty-two sub-entries gives section references for sections 1 to 90. Running heads carry section references
• [Authoritative Bare Act Presentation] Taxmann's Bare Act editorial format is followed throughout. Section headings are set in bold, and a boxed COMMENTS device under fourteen sections keeps the Section Notes and Case Laws apart from the statutory text

The structure of the book is as follows:

• Contents
• Chit Funds Act 1982, with Section Notes and Case Laws
• Sections 1 to 90, in thirteen Chapters
• State amendments of Karnataka
• Schedule
• Form of Balance Sheet (Part I)
• Form of Profit and Loss Account (Part II)
• Subject Index