Nagpur: The Income Tax (IT) Department’s Intelligence and Criminal Investigation Wing (ICIW) has issued notices to around 130 major hospitals across Vidarbha, including multi-speciality, cancer care, and diagnostic centers, to investigate possible manipulation in cash transactions.
According to IT officials, the move aims to trace unreported high-value cash flows in the healthcare sector. Hospitals have been directed to furnish detailed financial records under the Statement of Financial Transactions (SFT) mechanism. As per the rule, any cash payment of ₹2 lakh or above must be reported to the IT Department along with the patient’s identity and related details.
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Officials said the probe will determine whether hospitals have accurately disclosed their cash transactions. Preliminary findings suggest that some institutions may have deliberately omitted transactions from SFT reporting.
“Despite the spread of digital payments, cash continues to dominate. Huge sums are still being received for surgeries, fertility treatments, and diagnostics,” an official said, adding that the department will verify the accuracy of the submitted data.
Sources further revealed that some hospital administrators might have diverted funds to other businesses to evade taxes. Chartered accountants associated with these hospitals are also under scrutiny for their possible role in the irregularities.
The notices, issued under Section 133(6) of the Income Tax Act, 1961, seek comprehensive documentation including ledgers, vouchers, and diagnostic records to ensure compliance and detect discrepancies.
