In India, The Chit Funds Act 1982, regulates Chit Fund companies. Therefore, A Company which is registered under this act and have obtained certificate from the concerned registrar are legal.

Yes, TrueFIN Chits Private Limited is registered under The Chit Funds Act, 1982 with The Deputy Registrar of Chits, Chennai Central vide Certificate Reference Number : CFR/Chennai Central/4/2025.

No, TDS is not applicable.

Yes, GST at the rate of 18% is applicable on Foreman commission.
Note: Subscribers who are registered under the GST, are eligible to claim the same as Input Tax Credit.

The Foreman is the Person or the Company responsible for managing and conducting the chit. Foreman commission is the fee charged for managing such chit group, as specified in the chit agreement.

Subscriber: A subscriber is a person who has joined a chit group and holds a ticket, or a fraction of a ticket, in that group.

Subscriber ID: A unique ID assigned to each person at the company level. It stays the same across every chit group you join with TrueFIN.

Ticket Number: A number that identifies your ticket within a particular chit group. It is specific to that group, so you will have a different ticket number in each group you join.

The documents required depend on your applicant type. Select the relevant link below to download the enrolment document and checklist.

Auction Discount is the amount a subscriber agrees to forego from the Chit Value to win the prize money in an auction. The Foreman’s commission is deducted from this discount, and the balance amount is known as Chit Dividend which is shared among all the subscribers.

It is a small part of your periodic dividend (generally 0.1% of the Chit Value) kept aside to recover any dues, such as interest or penalty. However the balance amount is paid back to the subscriber when the chit terminates.

It is the minimum discount a subscriber must agree to forego to win the prize money in an auction. It is communicated in the auction reminder.

Yes. We send a reminder message or mail one day before every auction through WhatsApp, SMS and email.
Note: Please keep your contact details updated. Non-receipt of a reminder does not affect the auction.

Our team will contact you to collect your prize-winner documents. You will also be required to provide sufficient security against the prize money.

• Securities we accept :
a. Assignment of life insurance policy provided the surrender value of the policy is at least 1.5 times the future liability of the prized subscriber.
b. Deposits with the TFC in the chits or otherwise, free from any encumbrance, net paid-up amount of which after deducting foreman’s commission should not be less than 1/3 of the prized subscriber’s liability with the TFC.
c. Fixed Deposit receipt of such value that it should cover 100% of the future liability of the prized subscriber.
d. Bank Guarantee
e. Promissory note (Three post-dated cheques of subscriber)
f. Guarantor / Surety Undertaking (Three post-dated cheques of guarantor/surety)
g. Mortgage of immovable urban house property situated within the jurisdiction of the branch, belonging to either the prized subscriber or a third-party guarantor(s) on submission of originals of Sale Deed, Approved Plan, Link documents, encumbrance certificate for 18 continuous years, latest property tax payment receipts etc., as security together with the personal guarantee of a person acceptable to the foreman and the management. The value of the property should exceed by one and half times of the amount due from the prized subscriber.
h. Pledge of gold ornaments of such market value which is 1.5 times the future liability of the prized subscriber.
i. Shares, Debentures, Government bonds or Units of Mutual Funds to be pledged in the name of "TrueFIN Chits Private Limited" of such market value which is 1.5 times the future liability of the prized subscriber.
j. Any other security acceptable to the foreman.

The prize money is disbursed within 3 working days of receiving sufficient security to the satisfaction of foreman subject to completion of all documents.

Payment can be made through any of the modes:

Mobile app or website: Sign-in and pay through our payment gateway using UPI, Netbanking or a debit card.
Netbanking: Directly from your bank account via RTGS/NEFT/IMPS and intimate us.
Enable NACH or Standing instructions
Issue Cheque or DD in the name of "TrueFIN Chits Private Limited"
Cash will be accepted only upto Rs. 20,000/- per day per person (Limits as specified under the prevailing Income tax act)
(Note: Charges relating to card payment or any other online payment mode shall be borne by the subscriber)

Yes. You can pay in advance or in parts whenever funds are available, as long as the full instalment is received before the due date or auction date.

• *Cashback Chit: A regular auction-based chit where the periodic auction discount is shared among all members as a chit dividend, so every subscriber receives cashback each month. On termination of the chit, a lump-sum dividend is paid to the subscriber based on their payment performance (subject to interest penalties, if any).
• *Growth Chit: A fixed-prize chit where the prize money for each month is predetermined, so subscribers know their returns upfront based on the month they choose to take the chit; dividends accumulate and are paid in full when the subscriber becomes the prized winner.

Before you win the prize
Record each instalment paid as a debit to the “TrueFIN Chit Investment” account, shown under Investments in the balance sheet.
Credit Chit dividends received to the same account. This keeps the account at net cost.

When you win the prize
Compare the prize money received with the total of:
(i)instalments paid so far (net of dividend), plus
(ii)future instalments payable (at gross).
If the prize is higher: the difference is profit on the chit and goes to the P&L account.
If the prize is lower: the difference is a finance charge. Spread it over the remaining life of the chit at the implicit interest rate.

After you win the prize:
Record future instalments at their gross amount in Chit "TrueFIN Chit Investment” account. and
Recognise Chit dividends on those instalments in the P&L account.

Chit Dividends received before you win the prize is generally treated as a reduction of your Instalment amount cost. Hence such net amounts (Installment amount paid - Periodic Chit dividend received) will be Debited to you Chit investment account. Hence it is not taxable on receipt

Yes, if you earn a return. The net gain on a chit is taxed under “Income from Other Sources” at applicable normal Tax rates. If you receive the prize early and bear a finance cost, you can claim it as an expense against business income, only if you carry on a business or profession.

Yes. Email us at invest@truefinchits.com from your registered email ID, or submit a KYC update form. Changes are made after verification.