The income tax department, in an effort to prevent tax evasion, will monitor cash transactions in businesses that exceed the cash limit.
The Income Tax Department will monitor cash transactions to prevent tax evasion. (Representative image)
The income tax department will monitor cash transactions in hospitals, banquet halls and businesses to prevent tax evasion.
According to the Income Tax Department, accepting Rs 20,000 or more in cash for a loan or deposit is prohibited, and such transactions must be conducted through banking channels only. Also, a person is not allowed to receive in total Rs 2 lakh or more in cash from another person. People also cannot claim cash donations made to a registered trust or political party as deductions.
The department monitors cash transactions in certain institutions and businesses, including hospitals. According to a report by NDTV, department officials confirmed that health facilities have repeatedly ignored the rule of collecting PAN cards from patients upon admission.
The income tax department is now considering action against these hospitals. The department plans to use data from health service providers to track patients who have paid large sums to private medical facilities.
The tax department uses detailed data such as the annual information declaration to detect any anomalies in the declarations filed.
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