The Income Tax Department has kept an eye on cash transactions like a vulture. They has hospitals, banquet halls and many professionals on their radar. Many of these clients are not taking PAN.
Several architects and banquet halls have also faced action from the Income Tax Department in recent months. The IT department has less presence in many smaller cities. Due to this there is a possibility of tax evasion here. Tax evasion is difficult to detect due to cash dealing.
The department had received huge amount of cash and gold jewelery from steel manufacturers in Mumbai, Aurangabad, Nashik and Jalna. Due to this, the focus of the department is on every transaction that takes place in cash.
Officials told Times of India (TOI) that huge amount of cash has been recovered in small towns like Alwar, Kota and Jalna. Recently, officials of the department conducted raids in Mumbai, Aurangabad, Nashik and Jalna. A huge amount of cash and jewelery was recovered from steel bar manufacturers in these cities.
The IT department has limited reach in many cities. It has boosted the morale of tax evaders. They feel that they are out of the radar of tax officials. Officials said that from the current financial year, the department will have special emphasis on cash transactions. Cash transactions are still being used in many businesses. They are on the radar of Income Tax Department.
Officials said that it has been seen in the hospital cases that there are many who are not taking PAN from the patients. Even though it is legally required. For this, the department is trying at every level. They are also planning to take action against the hospitals that violate the law. For this, the data available with the Health Service Providers will be used. Those patients who have given large amounts of cash to avail healthcare facilities will be tracked. On the other hand, there is a side of hospitals that PAN cannot always be taken from the patients. These patients often come to the emergency section.
Similarly, action has been taken against some banquet halls in recent months. It is another matter that the transactions are not always shown in their books of accounts. In certain segments like expensive watches, the tax department has found that the transaction is more than the prescribed limit. At the same time, retailers say that they have complete details of buyers.
Officials have said that some professionals are also on their radar. In recent months, action has been taken against many architects. Wherever the department feels that it has solid evidence, it is not shying away from taking action.
