I have a query regarding a concern working as Follows:
It has 10 members & all contribute Rs. 1000. Like Kitty a draw will be there. One by one will be entitled to prize.
For Example if A is person won draw in First month, then he will be entitled prize in kind & he will not be liable to pay for next 11 instalments.
I have read Chit Fund act
Under definition clause (1) such tranactions are not chit transaction
So can anybody tell me under which act such transactions will be covered??