Wealth tax liability

[Vikas Aggarwal]

Dear all,

Can you please suggest me in the following issue:-

An individual run a proprietorship business and having liable to tax audit, on 31.3.2012 in his audited balance sheet show cash of Rs. 2,50,000/- is this cash liable for Wealth tax, this cash is a normal course of business activity & totally use in the business of the individual (This cash is a productive asset)

Can there is any judgement to exempt this excess cash for liable to wealth tax.

 

regards,

CA Vikas Aggarwal

 

[CAGOPALJI AGRAWAL]

Keeping in view that your taxable wealth exceeds the limit of Rs. 30.00 lac from other assets, cash in excess of 50K would be taxable in case of individual.

AI Summary

Wealth Tax Alert: Cash Over Rs. 50,000 in Business May Be Taxable if Total Assets Exceed Rs. 30 Lakh An individual running a proprietorship business inquired about the liability of wealth tax on cash amounting to Rs. 2,50,000, as shown in the audited balance sheet on 31.3.2012. The cash is used in the normal course of business activities. A response indicated that if the individual's taxable wealth exceeds Rs. 30 lakh from other assets, any cash exceeding Rs. 50,000 would be subject to wealth tax.