Cash transactions over the limit at hospitals, banquet halls may land you in trouble

New Delhi, Aug 21: With an eye on tax evasion, the income tax department has set its sight on cash transactions in hospitals, banquet halls, and businesses to prevent tax evasion.

As per the Income Tax Department, accepting Rs 20,000 or more in cash for a loan or deposit is prohibited, and such transactions must be done through banking channels.

Besides, accepting cash worth Rs 2 lakh or more in aggregate from a single person in a day or one event or occasion will lead to a violation of cash transaction law.

People also cannot file donations made in cash to a registered trust or political party as deductions.

The department is monitoring cash transactions in some institutions and businesses including hospitals.

Certain professionals are also under the radar of the department, reports The Times of India.

The law mandates that the healthcare institutes, upon admission, must collect PAN cards of patients.

The Income Tax department is now mulling action against such hospitals.

The department may use the data from health service providers and track patients who have paid large sums to private medical facilities.

To enforce these rules, the department is utilising detailed data such as the Annual Information Statement to detect any discrepancy in the returns filed.