Details of additional features to be incorporated in a chitty software in

the light of new Chit Act

No need for branch accounting. Only Kuri and head office accounting is required.

Besides company auditing reports, additional statutory reports should be generated for chit registrar

Ticket transfer renamed as “Substitution of Subscriber”

Forfeitures renamed as “Removal of Subscriber”

CSD can not be collected but FD lean note is possible

Highlights

Every transactions relating to chit will be recorded with a common serial number

Late fee cannot be more than 12% per annum

Pass book loan can be provided on the amount paid by the non-prized subscriber

Chit security details will be maintained

Highlights cont…

Old pattern of Kuri accounting New pattern of Kuri accounting

Accounting difference between old and new pattern

Note: In case of multiple operational branches, branch accounting may require

Accounting

Paid up capital = 10,00,000+

Reserve (Minimum 10 % of last year net profit) = 50,000 + Profit (– Loss) = 3,00,000 +General Reserve = 2,00,000

Total NOF = 15,50,000

Suppose, Total sala of all commenced chits under new act is Rs. 1,00,00,000

Eligibility for starting new chit amounted to Rs. 55.00.0000

Now aggregate sala will be Rs. 1,55,00,000

Example

NOF Calculation

Fees1. Inspection of immovable property (section 20) - Rs. 25.00

2. Application for previous sanction (2 of section 4) - Rs. 25.00

3. Filing a chit agreement (1 of section 7) - Rs. 10.00

4. Filing copy of the minutes of proceedings (section 17) -Rs. 2.00

4. Certificate of commencement (2 of section 9) as per the table below

Stamp duty for chit registration - 2.5% of sala.

Chit Amt From Chit Amt To Fee (Rs.)

Up to 5000 10.00

5001 10000 25.00

10001 15000 50.00

15001 20000 100.00

20001 25000 150.00

25001 1,00,000 250.00

Above 1,00,000 750.00

Important fees & levies

Important fees & levies cont…

5. Various fees for chit audit and inspection by registrar (under section 24 and 46)

Chit Amt From Chit Amt To Fee (Rs.)

Up to 5,000 25.00

5,001 15,000 60.00

15,001 25,000 120.00

25,001 50,000 200.00

50,001 1,00,000 500.00

Above 1,00,000 1000.00

Registrar of Chits – Regulating and monitoring authority

Central Excise – Collection of Service Tax on income

IT Department – Collection of TDS on payment

Authorities concerned

Service Tax

Taxable income : Foreman commission Interest Late fee *

Taxable portion : 70 %Rate of Tax : 12.48 (S T 12%, Edu. Cess 2% & H. Edu. Cess 2%)

Primary exemption : 10,00,000

Taxes to be managed

TDS

Taxable Expenses : Canvassing commission Collection commission

Sitting Fees Taxable Amount : Payment exceeding 5000 at a time or 20,000 in a financial year to a party Rate of Tax : 10 %

* Please take clarification from your chartered accountant

It is suggested that, separate bank accounts may be maintained for the following transactions.

To deposit/payment of chit amount collected from subscribers

To release chit amount to prized subscribers (optional)

To transfer and payment of removed ticket amount

To transfer and payment of chit amount that not paid on due date

To maintain company transaction other than chit.

Bank account’s operation

Account No1

Account No 2

Account No 3

(Optional)

Account No 4

Account No 4

Deposit all chit receipts/payment

Chit Amt. payable

Fore

man

com

miss

ion, i

ntere

st, l

ate

fee

Removed ticket Amt.

Chit Amt. that not paid on due date

Manage other Receipt and payment

Payment of chit Removed ticket Amt.

Payment of chit Amt.

Payment/receipt adjustment of chit amt. payable after due date

Transfer

Model of bank operation

Process and preparation of forms and details required for

chit registration and other relevant activities with registrar

of chit.

Sample screenshots taken from Integra Chit Plus Software

Primary Setup

To incorporate primary details of foreman, registrar and directors of the company

Step1

Chit Designing

Design your chit as per the Central Chit Act.

Step2

Create Security Step3

50% as cash deposit and 50% as bank guarantee Or

Govt. securities amounted not less than 1.5 times of chit sala

Or Immovable property valued not less than 2 times of chit sala

In case of multiple division, deposit amount will be multiplied by division

Example:- Chit sala = 5,00,000 Total division = 3 Total security required = 5,00,000 X 3 = 15,00,000

Enter Security Details Step4

(Application for certificate of sufficiency of security for conducting a chit)

Take Print out of Form No X Step5

Preparation of Form I

(Application by a Foreman for obtaining previous sanction to commence or conduct a chit)

Step6

Printout of application Form I Step7

Preparation of Annexure Step8

Printout of Annexure Step9

Submit Application

1. Application form No I & Annexure

2. Security sufficiency Certificate

3. Details of NOF

4. Copies of the chit agreements- draft

5. Copies of audited balance sheet of last financial year

6. Auditor’s report on accounts for remaining period

7. Copy of incorporation certificate

8. Copy of memorandum and article of association

9. Board resolution to start chitty

10.Fee Rs. 25.00

Submit application to Deputy Registrar of Chit, Through Assistant Registrar of chits along with following attachments and details.

Step10

Enter Previous Sanction

GET your previous sanction and enter details in to software

Step11

Announce chit and subscribe tickets

Step12

Chitty Registration

Preparation and submission of Form No II & Form No VIII for Chitty Registration

Step13

Printout of Form No II Step14

Preparation of Form No VIII (Chit agreement) Step15

Take printout of Form No VIII Step16

Declaration by Foreman

RECEIVE Chitty Registration and prepare form No V (Declaration by Foreman)

Step17

Commencement of chits

Enter details of commencement

Step18

Now Chitty Commenced

Step19

A register of subscribers will be generated in Form XIII.

A ticket (subscriber) ledger will be generated in Form XIV.

A day book will be generated in Form XV.

A receipt will be provided in duplicate in Form XVI

A book containing details of notices issued to the subscribers.

A book containing the minutes of the proceedings of each draw

Registers and books to be maintained

A file containing true copies of notice issued to the subscribers.

A file containing chit application by the subscribers.

A file containing authorization for participating in the auction of the chit subscriber

A file containing the vouchers for payment made by the foreman.

A file containing documents relating to securities offered by the prized subscribers.

Files to be maintained

Balance sheet:Time for submission

Within a period of three months from the expiry of financial year

Form XXVIII:- Receipts and Expenditure account and statement showing the assets and liabilities of the individual chit group.

Time for submissionFor those chits, the duration does not exceed one year - Within two months from the termination of

the chit

If the duration of chit exceeds one year - on expiry of every period of twelve months and also on the

termination of the chit.

Filing reports and statement with Registrar

Wish You All The Best

Thank YouTeam Integra

0487 23220069846290789integraaims@gmail.comintegrachitplus@gmail.com