Limit of cash in hand

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

19 December 2014 Dear experts is there any restrictions to keep the cash balance in the business activity?
One of client was having cash in hand around Rs50 lacs as on 31.3.12
Pl clarify

CA Kumar Mukesh

CA Kumar Mukesh (Expert)
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19 December 2014 There is no consequences of holding cash ay amount.
However, Holding cash balances in excess Rs. 50,000 as on last day of 31st march, in case Individual same will be treated as wealth of assessee for the purpose of wealth tax as per provision of section 2(ea)(iv).

However in other cases cash balances in books a/c no limits are given i.e. no wealth tax at all

Rupesh Jain

Rupesh Jain (Expert)
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20 December 2014 there is no rule for maintain the cash bal. its depend on the nature of business and industry.

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