In order to prevent tax evasion, the Income Tax Department has decided to monitor cash transactions at hospitals, banquet halls and businesses. According to the department, cash transactions are occasionally forbidden and might get you in trouble. Accepting cash payments of ₹20,000 or more in exchange for a loan or deposit is against the law; all such transactions must follow banking protocols.
The department is currently planning to take action against these hospitals. It will also track patients who have paid significant sums of money to private medical institutions using data from health service suppliers.
You are not allowed to take a total cash payment of Rs. 2 lakh or more from another person. Cash contributions given to a recognised charity or political party are not eligible for a tax deduction.
The department is keeping an eye on a few professionals, according to a report by The Times of India. It is also keeping an eye on cash transactions in particular businesses and professions, including hospitals, to uphold these regulations. The law requires that healthcare facilities obtain patients' PAN cards upon admission.
The investigation also noted that health facilities had occasionally ignored the law, according to department officials.
Even though the transactions are never documented in their records, similar actions have recently been brought against some banquet locations. The tax division has found that certain marketplaces, such those for high-end watches, where the stores maintain precise lists of consumers and their information, transactions are lawful, the report added.
According to officials, if there is concrete evidence, the tax authorities are investigating certain professionals and taking action against them. For instance, they pointed out that not all professions were under scrutiny while citing recent actions taken against a few architects.
I-T departments' limited presence in a number of small towns has given tax evaders more confidence because they frequently think they can avoid the taxman's radar, according to officials. For the current fiscal year, there is a focus on cash transactions in particular, and some businesses that continue to conduct business in cash are being closely scrutinised.
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