Section 45 of The Chit Funds Act, 1982
All the records pertaining to a chit shall be kept by the foreman for a period of eight years from the date of termination of the chit.
Summary
- The foreman is legally required to keep and preserve all the records that belong to a chit.
- These records must be kept for a mandatory period of eight years.
- The eight-year preservation period begins on the date when the chit officially terminates.
Practical examples
FAQ
1. What is the exact duration for which chit records must be preserved by a foreman?
The records must be preserved for a period of eight years.
2. From which date does the eight-year preservation clock start ticking?
It starts from the date of termination of the chit, not the date the chit started or when the records were first created.
3. Does this rule apply to all records of the chit or only the financial ledgers?
It applies to "all the records pertaining to a chit" without exception.
Test yourself
Q1.Under Section 45 of The Chit Funds Act, 1982, for how many years must a foreman preserve all records of a chit after its termination?
Q2.Under Section 45 of The Chit Funds Act, 1982, when does the mandatory period for the preservation of chit records begin?
Q3.Under Section 45 of The Chit Funds Act, 1982, who is legally responsible for keeping and preserving all the records pertaining to a chit?
Q4.Under Section 45 of The Chit Funds Act, 1982, what records must be preserved for the required period?