wealth tax

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

23 May 2011 what is the the threshhold limit of cash, while caluculating net wealth in case of companies.
i know that incase of ind & huf if it is Rs.60,000/- on date of valuation, net wealth is 10,000/-.

incase of comapnies, i read that which not recorded in books of accounts. this statement i cant understand

thanks & regards
meena rao agraharapu

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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23 May 2011 Cash in hand - In case of individual and HUF, cash in hand on the last moment of the valuation date in excess of Rs. 50,000 is an ‘asset’. In case of companies, any amount not recorded in books of account is ‘asset’ [Section 2(ea)(vi)]

It means in case of companies---

Cash Balance as per books Rs 1 Lac
Actual Cash Balance Rs 1.5 Lacs. So Rs 0.5 Lacs will be treated as ‘asset’ u/s 2(ea)(vi).

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ca cs shriyans jain

ca cs shriyans jain (Expert)
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23 May 2011 Make a little correction. Limit for cash in hand in case of individual, huf is rs.50000. Nd for companies any amt of cash which is nt recorded in buks.

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ca cs shriyans jain

ca cs shriyans jain (Expert)
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23 May 2011 Make a little correction. Limit for cash in hand in case of individual, huf is rs.50000. Nd for companies any amt of cash which is nt recorded in buks.