Finance
By: Shree1news, 08 MAY 2021The government on Friday allowed hospitals, dispensaries and COVID-19 care centres to accept cash payments in excess of Rs 2 lakh from patients or their kin till May 31. The Central Board of Direct Taxes (CBDT) issued a notification saying such entities can be required to acquire PAN or Aadhaar of the patient and the payee and in addition the relationship between them.
“The Central Government …. hereby specifies Hospitals, Dispensaries, Nursing Homes, Covid Care Centres or similar other medical facilities offering COVID treatment to patients for the purpose of Section 269ST of the Income-tax Act,1961 for payment received in cash throughout April 1, 2021, to May 31, 2021, on obtaining the PAN or AADHAAR of the patient and the payee and the relationship between the patient and the payee…,” the CBDT mentioned.
Nangia & Co LLP Partner Shailesh Kumar mentioned within the current scenario, numerous hospitals/ nursing houses have been demanding fee in money for therapy of COVID-19. However, income tax law doesn’t allow cash payments beyond Rs 2 lakh as per Section 269ST.
“Considering the extraordinary pandemic situation, where saving life of people is most important, considering the genuine hardship of people, the Government has issued present notification allowing people to make cash payment for treatment of COVID even beyond this limit.
“The notification is applicable for all cash payments made on/ after 1st April 2021 till 31st May 2021,” Kumar added.
Source:A-N
