Cash Payment Of Rs 2 Lakh & Above Allowed For Covid Treatment At Hospitals
New Delhi: The Central Board of Direct Taxes (CBDT) issued a notification that permitted hospitals, dispensaries, nursing homes, COVID care centres or similar other medical facilities providing COVID-19 treatment to accept cash over and above the limit of Rs 2 lakh for Covid treatment till May 31.
The notification has been issued under the section 269ST of the Income Tax Act. This section prohibits any person to receive an amount of Rs.2 lakh and above in cash:
(i) In aggregate from a person in a day, or (ii) In a single transaction, or (iii) In respect of transactions relating to one event or occasion from a person .
The notification said that the latest provision is being made only for the period between April 1-May 31 on receiving the PAN or Aadhaar of the patient and the payee and the relationship between the patient and the payee by such hospitals or COVID care centres.
Granting further relief in view of severe Covid pandemic, provisions of section 269ST of Income-tax Act,1961 relaxed by the Central Govt.
Allows Hospitals/Medical facilities etc providing Covid treatment to patients to receive cash payments of Rs. 2 lakh or more.(1/2) pic.twitter.com/d6AZtqJPKM— Income Tax India (@IncomeTaxIndia) May 7, 2021