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Income tax rules eased,Centre allows cash payment of ₹ 2 Lakh for COVID treatment

By Priyanka Verma 
Updated Date
Income tax rules eased,Centre allows cash payment of ₹ 2 Lakh for COVID treatment

In order to provide relief amid the ongoing second wave of the COVID-19 pandemic in the country, the Income Tax (I-T) department announced that hospitals and nursing homes can now accept cash payments of ₹ 2 lakh or more for the treatment of coronavirus-infected patients till May 31, 2021.

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This exemption for receiving cash payment of over ₹ 2 lakh amid COVID-19 treatment is made only for the period between April 1 – May 31, 2021, said the Income Tax department.

The Department of Revenue at the Ministry of Finance issued notification in this regard and said, “The central Government, in exercise of powers conferred by clause (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 Aadhaar 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.”

Informing about the same, Income Tax Department also tweeted and said, “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,” adding, “Relaxation granted for the period 01.04.2021 to 31.05.2021, after obtaining PAN or AADHAAR of patient & the payer.”

According to the health ministry data updated on Saturday, May 8, the country – battling against the deadly COVID-19 wave, registered a record 4,187 deaths and as many as 4,01,078 new COVID-19 cases in the last 24 hours.

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