IT Dept To Keep A Check On Cash Transactions At Hospitals, Banquet Halls

The Income Tax Department has planned to monitor cash transactions at hospitals, banquet halls, and enterprises in order to combat tax cheating. Cash transactions are occasionally prohibited by the agency and may get you in hot water. Accepting cash payments of 20,000 or more in exchange for a loan or deposit is illegal; all such transactions must adhere to banking regulations.

According to the income tax authority, 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 enterprises, including hospitals, are being monitored by the government. According to sources, authorities from the government revealed that in certain cases, health facilities failed to collect patients' PAN cards when they were admitted.

The IRS is now preparing to take action against such hospitals. The department intends to trace patients who have spent high sums to private medical institutions using data from health care suppliers. To uncover any inconsistency in the returns filed, the tax department uses specific data such as the Annual Information Statement.

According to officials, the limited presence of I-T departments in a number of small towns has given tax evaders more confidence because they typically believe they can dodge the taxman's radar. For the current fiscal year, there is a particular emphasis on cash transactions, and certain businesses that continue to do business in cash are being thoroughly scrutinized.