Cash balance above 50000 (Income Tax)

This query is : Resolved

Author : Anonymous

( Author )
11 July 2012

If a individual Shows in his ITR cash balance above 50,000 then is there any possibility of any kind of risk ..?
Like there must not be enough cash or same should have been invested some where else.
And further his Turnover is around 8-9 Lakhs... & Gross total Income after deduction UC VIA Always remains below Exemption Limit..

CA Lokesh Pokharna

( Expert )
11 July 2012

50000 cash balance is not a worry thing...

CA Dileep Surya Kumar

( Expert )
11 July 2012

Normally Cash above 50000 on valuation date shall be chargeable to wealth tax in case of Individuals and hufs.

Turnover even if above 8 lakh, there is no need to file ITR if total income before giving deductions under chapter VIA(GROSS TOTAL INCOME)less than maximum amount not chargeable to tax.

Author : Anonymous

( Author )
11 July 2012

how it shall be taxable as wealth Tax ...?
& what is the Proper limit above which it is taxable under wealh tax.?

CA Dileep Surya Kumar

( Expert )
11 July 2012

Wealth tax will be attracted when the net wealth exceeds Rs.30Lakhs on valuation date.

Net wealth includes Assets(Section 2ea of wealth tax act) that includes cash above 50000 minus related liabilities.

Author : Anonymous

( Author )
11 July 2012

Can you please Explain Related liabilities..?
What liabilities shall come under this head.?

CA Dileep Surya Kumar

( Expert )
11 July 2012

Related Liabilities would mean Debt owed represents an obligation to pay an amount either in present or in
future. In the computation of net wealth, from the total of all assets value of debts
owed by an assessee is deductible provided following conditions are satisfied
i) Debt is owed by assessee on valuation date
ii) Debt should have been incurred in relation to acquisition or creation of
any asset( listed in Section 2ea), which is taxable for Wealth Tax in the hands of assessee.