Regarding wealth tax
This query is : Resolved
20 December 2014
Mr. x on its individual capacity has annual turnover of 125 crores..
Trade creditors as on 31.03.14 on books is of 3 Crores.. on delay payment Mr. X is paying interest on same to Trade Creditors...
Now as on 31.03.2014 cash in hand was 70 Lacs approx.
my question is.. Is this cash is taxable in wealth tax.. or its a part of loan fund n its exempt..
Thanks in advance.. for ur kind reply..
Trade creditors as on 31.03.14 on books is of 3 Crores.. on delay payment Mr. X is paying interest on same to Trade Creditors...
Now as on 31.03.2014 cash in hand was 70 Lacs approx.
my question is.. Is this cash is taxable in wealth tax.. or its a part of loan fund n its exempt..
Thanks in advance.. for ur kind reply..
21 December 2014
Cash in excess of Rs. 50,000 as on 31st March, 2014 treated as wealth of Individual within the meaning of cash under section 2ea of wealth tax for the purpose of charging wealth tax.
Trade creditors will never be treated as part of loan within the meaning of section 2(m) of debts
Trade creditors will never be treated as part of loan within the meaning of section 2(m) of debts
22 December 2014
thanks for ur kind reply
sir whats d case if instead of trade creditors.. its unsecured loan????..
sir whats d case if instead of trade creditors.. its unsecured loan????..
22 December 2014
sir whats d case if instead of trade creditors.. its unsecured loan
22 December 2014
yes you can treat as debts against cash but there should be direct nexus between loan and cash in hand
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