Income Tax Alert: Your Cash Transactions At Events, Parties, Shops Are Being Monitored By IT Officials
To prevent tax evasion, the income tax department will be monitoring cash transactions in hospitals.
As per the notifications of income tax department, accepting more than 20,000 or more in cash for a loan or deposit is prohibited.
If any transaction is to be done, then it is to be done through banking channels only.
IT Department Tracking Cash Transactions
In addition to this any person should not receive Rs 2 lakh or more in cash in aggregate from another person. In addition to this, people cannot file donations made in cash to a registered trust or political party as deductions.
In institutions and businesses including hospitals, the cash transactions are being monitored by the department.
There have been confirmations of the fact that there have been multiple instances wherein the rule to collect the patient’s PAN cards has been disregarded.
The IT department now has plans to go after those hospitals which have been defying the IT set norm. They also plan to go against the patients who have paid large sums to private medical facilities by obtaining the data from health service providers to track them.
The tax department is utilizing detailed data such as the Annual Information Statement to detect any discrepancy in the returns filed.
India’s Plan to Become Trillion Dollar Digital Economy
India plans to become trillion-dollar digital economy and government departments are actively driving the blueprint to achieve this.
The government wants the Indian economy to transact $1 trillion of digital revenue by 2022, and $1 trillion of economic value from the digital economy by 2025.
IT department is working day in and out to realize this aim. IT department likes the payments being done digitally as cash does not have a digital footprint and hence is difficult to track. It is a government agency undertaking direct tax collection of the Government of India which functions under the Department of Revenue of the Ministry of Finance.
There is tremendous work going on the make this thing true, and the overall digital ecosystem is still expanding.
At the very least the digital payments revolution has well and truly started.
Please make sure to follow the rules to not come under the radar of IT department.