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The government imposes ease upon the ₹2lakh cash payment cap for COVID aid

In order to provide some relief to hospitals treating Covid patients, the central government has relaxed income tax norms for Covid hospitals, pharmacies, nursing homes, and similar facilities that earn cash of Rs 2 lakh or more from patients.

According to a notification issued by the Ministry of Finance on Friday, a relaxation in Section 269ST of the Income Tax Act will be granted to Covid Care hospitals. The exception for cash payment receipts, on the other hand, is only in effect from April 1 to May 31, 2021.

“Granting further relief in view of severe Covid pandemic, provisions of section 269ST of Income-tax Act, 1961 relaxed by the Central Govt,” the Income Tax Department said in a tweet. Allows hospitals/ medical facilities etc providing Covid treatment to patients to receive cash payments of Rs. 2 lakh or more”, with the caveat that “Relaxation granted for the period 01.04.2021 to 31.05.2021, after obtaining PAN or AADHAAR of patient and the prayer.”

The Ministry of Finance’s Department of Revenue released a statement in this regard, saying, ” The Central Government, in exercise of powers conferred by claws (iii) of Provision to Section  269ST  of the Income- Tax Act, 1961, hereby specifies  hospitals, dispensaries, nursing homes, Covid Care Centre or similar other  medical facilities providing Covid treatment to patients for the purpose of Section 269ST of Income-Tax Act, 1961 for payment received in cash during 01.04.2021  to 31.05.2021, on obtaining the PAN or Aadhar of the patient and the payee and the relationship between the patient and the payee by such hospitals, dispensaries, nursing homes, Covid Care Centres or similar other medical facilities. “

To earn cash in excess of Rs 2 lakh, three requirements must be met, according to the notification. The PAN and Aadhaar numbers of the patient are needed. If the payment is made by a relative of the patient, the payee’s PAN and Aadhar will be needed. The payee’s relationship to the patient must be revealed as well.

The government was asked by the Delhi High Court to consider lowering the Rs 2 lakh cash transaction cap to help COVID patients.

Khushi

Khushi is an avid reader and loves analyzing companies in the digital space. Her interest is in online marketing, business, startups, and politics. She does everything perfectly by taking extra time.
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