Government relaxes maximum cash payment of Rs 2 lakh in COVID treatment | Photo credit: Getty Images
New Delhi: To provide some relief to hospitals treating covid patients, the central government has eased the tax norms for covid hospitals, dispensaries, nursing homes and covid care centers of similar facilities to receive money of Rs 2 lakh or more from patients.
In a notification issued by the Ministry of Finance issued in this regard on Friday, it was announced that a relaxation for Covid Care hospitals under Section 269ST of the Income Tax Act will be provided. But, the exemption for cash payment receipt is only for the period from April 1, 2021 to May 31, 2021.
Informing about the same, the Income Tax Department also tweeted and said, “Advancement of further relief in view of severe Covid pandemic, the provisions of section 269ST of the Income Tax Act of Income, 1961 relaxed by the Central Government. It allows Hospitals/Medical Facilities etc. to patients to receive cash payments of Rs. 2 lakh or more,” adding, “Relaxation granted for the period from 01.04.2021 to 31.05. 2021, after obtaining PAN or AADHAAR of patient and payer”.
The Department of Revenue of the Ministry of Finance issued a notification in this regard and said: “The Central Government, in exercise of the powers conferred by clause (iii) of the Provision to Section 269ST of the Income Tax Act, 1961 specifies here hospitals, dispensaries, nursing homes, Covid Care Center or other similar medical facilities providing Covid treatment to patients for the purpose of Section 269ST of the Act of Income Tax, 1961 for payment received in cash from 01.04.2021 to 31.05.2021, to obtain the PAN. or Aadhaar of the patient and the beneficiary and the relationship between the patient and the beneficiary from such hospitals, dispensaries, nursing homes, Covid Care Centers or other similar medical facilities.”
The notification clearly states that for the purpose of receiving cash more than Rs 2 lakh, three conditions have to be fulfilled. PAN and Aadhaar of the patient is a must. If the payment is made by a relative of the patient, then PAN and Aadhar of the beneficiary will be mandatory for such payments. In addition, the payer’s relationship with the patient must be stated.
The decision comes after the Delhi High Court asked the government to consider relaxing the cash transaction limit of Rs 2 lakh to help COVID patients.