Avoid using cash and instead pay through banking channels
To prevent tax evasion, the income tax department has decided to keep an eye on cash transactions in hospitals, banquet halls, and businesses.
As per the Income Tax Department, cash transactions are sometimes not legal and can get you in trouble. Accepting Rs 20,000 or more in cash for a loan or deposit is prohibited, and such transactions must be done through banking channels.
A person is also not allowed to receive an amount of Rs 2 lakh or more in cash in aggregate from another person. Donations made in cash to a registered trust or political party are not allowed as deductions.
To enforce these rules, the IT department monitors cash transactions in some businesses and professions, including hospitals. The Times of India reports that certain professionals are also under the radar of the department.
The law mandates that the healthcare institutes, upon admission, must collect PAN cards of patients.
However, according to officials from the department, the report added that health facilities, in several instances, had disregarded the rule.
The Income Tax department is now planning action against such hospitals. The report added that it would use the data from health service providers and track patients who have paid large sums to private medical facilities.
For a detailed list read this: Income Tax-leaflet-Say No to Cash Transaction
Income Tax Department: Say No To Cash Transactions
The report said that the tax department is utilising detailed data such as the Annual Information Statement to detect any discrepancy in the returns filed.
How To Check And Submit Correct Income Details:
Along with attaching the required documents, taxpayers must also ensure to submit the correct information as per their details in the Annual Infomation Statement (AIS) and Taxpayer Information Summary (TIS).
Any discrepancy in the information submitted in the tax return and details of AIS and TIS may invite a notice from the Income Tax Department.
Launched in 2021, AIS is a comprehensive statement containing all the details of an individual financial transaction in the past year.
It contains information mandated in the Income Tax Act, including interest earned on savings account/fixed deposits, TDS, earnings as dividends, mutual funds or other such investments.
Taxpayers can download their AIS for the year by logging into their accounts on the Income Tax Department portal.
AIS is available for download under the “Services” tab on the e-filing portal. On the other hand, TIS is part of the AIS and contains an information summary for a taxpayer aggregated by category.
Each category displays the processed value produced due to information deduplication based on pre-established rules and derived values.
TIS displays details including Information Category, Processed Value and Derived Value. The information is used for prefilling returns wherever required.
Taxpayer Information Summary, like AIS, can be downloaded from the e-filing portal of the Income Tax Department. To access your TIS, click on AIS under the services tab of the I-T portal.
Click “Taxpayer Information Statement” on the next page to download it in a password-protected PDF. To access the TIS, enter the PAN in the lower case along with the birth date in the case of an individual taxpayer.
For all the latest business News Click Here
