wealth tax

Dear Sneha,

In case of Individual only cash exceeding 50,000/- is taxable under wealth tax, Bank Balnce is not taxable under wealth tax. If loan is given in cash then it will be taxable in the hands of parents and further more if loan os converted into any other asset which is liable to tax under the provision of wealth tax then that will be clubbed.

Thanks & Regards

Hitesh

Loan given to firm is not liable for wealth-tax as it does not come under the purview of Assets as defined u/s.2 (ea) and also of Deemed Assets as defined u/s.4 of the Wealth Tax Act which are liable for wealth tax.

Ashok is right.

Loan given to firm is not covered under the definition of  asset under wealth tax and even loan/asset given/transferred to son is not covered under the deemed assets SEC -4.