I-T dept surveys hosps, finds Rs3cr cash receipts

Nagpur: The income tax department, which now brought medical establishments under its scanner for cash receipts, conducted a survey on yet another hospital. The taxmen found cash receipts to the tune of Rs2.5 crore from around 100 transactions. The survey, conducted by the dept's Intelligence and Criminal Investigation (ICI) wing, covered a multispeciality hospital on Tuesday. Last week, an orthopaedic hospital was surveyed, said sources. The taxmen have across cash receipts worth over Rs3 crore in all from the two hospitals.Income tax laws prohibit receipt of Rs2 lakh cash and above for a single transaction and if found, the recipient has to pay double the amount as penalty. For a hospital, the definition of a single transaction covers one entire procedure. For example, if a person is admitted for surgery, the amount paid from admission to discharge is considered a single transaction. If an amount exceeding Rs2 lakh is taken in cash, it amounts to a violation and can attract a penalty.
In the health sector, there is likelihood that a large number of patients may not have income above the taxable limit. However, there are strict provisions against accepting cash by the hospitals too. If accepted, it has to be not only reported in the tax returns but also filed in the statement of financial transactions. The income tax department can also consider exceptions in cases of medical emergencies. However, large-scale acceptance of cash can invite action, said a source.