I-T dept spot-checks private hospitals for TDS evasion

Income Tax TDS wing on Thursday carried out spot verification at major private hospitals in Kochi regarding tax deduction and salaries given to consultant doctors.

Published: 27th May 2022 06:35 AM  |   Last Updated: 27th May 2022 06:35 AM   |  A+A-

Income Tax, Income Tax Department

Income Tax Department (Photo | PTI)

By Express News Service

KOCHI: Income Tax TDS wing on Thursday carried out spot verification at major private hospitals in Kochi regarding tax deduction and salaries given to consultant doctors. The spot verification was part of the nationwide drive carried out by Income Tax TDS wing. According to Income Tax officials, the spot verification was launched after it was found that hospitals were giving consultant contract to doctors. However, the doctors work as regular employees of these hospitals.

For consultant doctors, the TDS deduction is 10 per cent compared to 30 to 40 per cent deduction for doctors who work as employees of a hospital. “TDS filed by all major hospitals are being checked as part of the spot verification. The work contracts of doctors with hospitals were verified to check whether they are regular employees or consultants. It was revealed that major tax evasion is taking place in the TDS filing by hospitals after employing doctors as consultants,” an Income Tax official said. The hospitals which were found to have violated the rule will be fined.

The consultant doctors are paid based on the services rendered by them and on the basis of doctors’ fees collected by hospitals from patients. Hence the payment made to consultant doctors varies each month. These doctors are not employees of any hospital and are not entitled to fixed remuneration. “However, it is found that some hospitals appoint consultant doctors with fixed salaries and benefits. These doctors also work as employees of the hospital. But TDS is deducted for the category of consultant doctors,” an official said.



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