CBDT: The government got information that large scale cash transactions are being done in many types of businesses. Now the government has turned its attention towards these businesses which are promoting cash transactions. In view of this, the Central Board of Direct Taxes (CBDT) has directed the Income Tax Department (IT Department) to start investigation of these businesses. With this step of the government, now hotels, halls, luxury retail, IVF clinics, hospitals, designer stores and medical colleges are in trouble.
Large scale cash transactions are going on in these businesses
While issuing the Central Action Plan 2024-25, the CBDT has told the IT Department that large-scale cash transactions are going on in these businesses. This should be investigated without harassing anyone. Apart from this, instructions have also been given to make concrete efforts to recover the outstanding demands. There has been a significant increase in arrears demand since last financial year. According to the rules, information has to be given about cash transactions of more than Rs 2 lakh. But, this rule is not being followed properly.
Fraud can be done through cash transactions
Under Section 139A of the Income Tax Act, providing PAN is mandatory. However, there is no mechanism to enforce this. In cases of cash transactions, it is important to ensure the identity of taxpayers. There is also a possibility of fraud in this. The IT Department has received information that many businesses like hotels and hospitals are accepting cash transactions on a large scale. Now, on the instructions of CBDT, their identification and verification will be started.
CBDT worried over huge surge in arrears demand
According to a senior official, 1100 raids were conducted in the financial year 2023-24. Assets worth Rs 2500 crore and cash worth Rs 1700 crore have been recovered in these. Cash is still dominant in the economy. The IT Department wants to increase the number of taxpayers. This is the reason why the number of people filing Income Tax Returns has increased this year as well. The arrears demand was Rs 24,51,099 crore on April 1, 2023. This figure has increased to Rs 43,00,232 crore on April 1, 2024. CBDT has also expressed concern about this.
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