The Income Tax Department has decided to keep a watch on cash payments in hospitals, banquet halls and businesses. Its purpose is to curb tax evasion. Actually, the Income Tax Department wants to ban the use of cash.
New Delhi. In this cashless and digital era, if you still believe in paying in cash or you have a habit, then you may find this habit heavy. Let us tell you that the Income Tax Department has decided to keep an eye on cash payments in hospitals, banquet halls and businesses.
Its purpose is to curb tax evasion. Actually, the Income Tax Department wants to ban the use of cash. The department wants people to use maximum banking and digital medium for payment.
Violation of loan or deposit law above Rs 20,000
According to the Income Tax Department, taking a loan or deposit of more than Rs 20,000 in cash is a violation of law. According to him, all such transactions should be according to the rules of banking. The Income Tax Department is planning to take action against the hospitals that take more cash payment than the cash payer.
Data of the patient being called
The Income Tax Department is also trying to trace those who have paid large amounts in cash for hospital or other medical services. For this, data of patients is being called from hospitals and other such institutions. The rules of the Income Tax Department regarding cash payment are already clear. No person is allowed to take cash of Rs 2 lakh or more from another person. Donations in cash to any organization or political party do not get the benefit of tax deduction.
The Income Tax Department is also keeping an eye on certain businesses and professions. According to the Income Tax rules, hospitals or institutions providing other types of medical services are required to know the PAN of the patient at the time of admission.
Strict action will be taken against Banquet Hall too
In banquet hall cases also it has been found that they do not keep records of transactions. Action has been taken against some such banquet halls. Income Tax Department officials say that investigation is going on against some professionals as well. If concrete evidence is found against them, then action will be taken.
Income tax department officials say that tax evaders in small towns tend to believe that they will not come under the income tax department’s radar and will be saved from their sight. The reason for this is that there are not many officers of the Income Tax Department in such cities. The department is also probing cash transactions from this point of view.
