JohnTitor wrote:^^ I think we should get back to the thread and see if the issue that jamwal brought up can be addressed... I.e.
How can professional like doctors be taxed ? Only a small fraction accept card payments
There are two types of doctors, i) those who run individual clinics i.e. self professional income, ii) who run small hospitals i.e. a registered business. Other than salaried doctors who may Income Tax from their salaries. For the 1st kind it is hard to ascertain source of income. If the doctor wants to hide it, they can & they do. They will not give you an invoice, give prescription on a small letterhead, take cash & you're done. Only individual scrutiny can bring these crooks to books. The 2nd type is more inclined to pay taxes as they've a business with P&L. But since they cannot claim input on the equipment & consumables purchased, they'll also be susceptible to purchase in cash, as much as possible. Only the willing will pay tax, other will do what has been done till now. For other professionals like CAs, Consultants, etc., it is tougher than Doctors to dodge taxes because their clients are corporates & their TDS is deducted thus declaring their income. I think the only way to increase compliance with doctors is to make healthcare taxable under GST, even if at 5% so that inputs can be claimed & the white money does not get black in doctor's pockets.