Wealth tax
This query is : Resolved
19 January 2013
What is the treatment of cash in hand while computing net wealth of a firm? (For apportion among partners)
19 January 2013
As per the section 2(ea)(vi) of the Wealth Tax Act
Following is treated as an “assets”:
a) In case of any individual and HUF, cash in hand on the last moment of the valuation date in excess of 50,000 shall be treated as “asset”
b) In case of any other person any amount not recorded in the books of accounts shall be treated as “asset”.
That is if the Cash Balance of the Firm is recorded in the Books of Accounts, it is not an Asset and accordingly it need not to be apportioned among the Partners.
Following is treated as an “assets”:
a) In case of any individual and HUF, cash in hand on the last moment of the valuation date in excess of 50,000 shall be treated as “asset”
b) In case of any other person any amount not recorded in the books of accounts shall be treated as “asset”.
That is if the Cash Balance of the Firm is recorded in the Books of Accounts, it is not an Asset and accordingly it need not to be apportioned among the Partners.
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