CBDT notifies Relaxation in Cash Payments of more than 2 Lakhs in Hospitals providing Covid Treatment [Read Notification]

CBDT - Cash Payments - Covid Treatments - Relaxation in Cash Payments - Hospitals - Taxscan

The Central Board of Direct Taxes (CBDT) notified the relaxation in cash payments of more than 2 lakhs in hospitals providing Covid treatment.

“The Central Government, in the exercise of powers conferred by clause (iii) of Proviso to Section 269ST of the Income Tax Act, 1961, hereby specifies Hospitals, Dispensaries, Nursing Homes, Covid Care Centres or similar other medical facilities providing Covid treatment to patients for the purpose of Section 269ST of the 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,” the CBDT notified.

Generally, Section 269ST lays down that no person shall receive an amount of Rs. 2Lakhs or more in aggregate from a person in a day; or in respect of a single transaction; or in respect of transactions relating to one event or occasion from a person, otherwise than by an account payee cheque or an account payee bank draft or use of electronic clearing system through a bank account or through such other electronic mode as may be prescribed. However, the Government while observing the need for an hour relaxed the provisions of section 269ST of the Income Tax Act.

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