Tax evaders beware! You can come under I-T dept scanner for paying cash at banquets, hospitals

The Income Tax Department has decided to monitor cash transactions at hospitals, banquet halls, and businesses in order to combat tax evasion.

According to the income tax department, taking cash for a loan or deposit of Rs 20,000 or more is forbidden, and such transactions must be conducted solely through banking channels. Furthermore, a person is not permitted to receive more than Rs 2 lakh in cash from another individual. People cannot also deduct cash donations made to a registered trust or political party.

Cash transactions in several institutions and businesses, including hospitals, are being monitored by the government. According to an NDTV report, authorities from the government revealed that in certain cases, health facilities failed to collect patient's PAN cards when they get admitted.

The department intends to take action against these hospitals. It will also use data from health service providers to track patients who have paid large sums of money to private medical institutions.

The investigation also noted that health facilities had occasionally ignored the law, according to department officials.

Despite the fact that the transactions are never captured in their records, similar cases have recently been brought against some banquet locations. The tax division discovered that certain marketplaces, such as those for high-end watches, where businesses keep exact records of customers and their information, transactions are lawful, the report added.

According to officials, if there is substantial evidence, the tax authorities are investigating and prosecuting certain specialists. For example, they asserted that not all professions were being investigated while highlighting recent measures taken against a few architects.

The tax department believes it has precise data on hand, which it is utilizing. For example, the Annual Information Statement generates a vast number of data, which is being processed, and data that is not reflected in returns is being analyzed. Furthermore, the link with GST is resulting in either income taxpayers coming clean or facing action.

READ| No consideration to levy any charges on UPI services, government allays fears