New Delhi: Avoid using cash and pay through banking channels instead. Otherwise, you may be in trouble, said the Income Tax Department. The Income Tax Department has decided to check cash transactions in hospitals, banquet halls, and businesses to prevent tax evasion.
According to the Income Tax Department, cash transactions are sometimes illegal and can land you in trouble. Similarly, accepting more than 20,000 in cash for loans or deposits is prohibited, and such transactions must be done through banking channels.
Similarly, a person is not allowed to accept an amount of Rs 2 lakh or more from another person. Donations in cash to a registered trust or political party are not allowed as a deduction. To enforce this rule, the IT department is monitoring cash transactions in certain businesses and businesses, including hospitals. The Times of India reported that some professionals are also on the department’s radar.
The law states that health institutions have to submit the patient’s PAN card at the time of admission. However, according to departmental officials, the report shows that health facilities have violated these rules in many cases. The Income Tax department is now planning to take action against such hospitals. It will use data from health care providers and track patients who have paid large sums of money for private medical facilities, the report said.