Exemption for receiving cash payment of over Rs 2 lakh is made only between April 1-May 31In order to provide relief amid the ongoing second wave of the COVID-19 pandemic in the country, theIncomeTax (I-T) department announced that hospitals and nursing homes can now accept cash payments of Rs 2 lakh or more for the treatment of coronavirus-infected patients till May 31, 2021.
(Also Read:Income Tax Compliance Deadlines Extended Amid New COVID-19 Wave)In a recent notification,the I-Tdepartment saidthathospitals, nursing homes, COVID care centres, or similar other medical facilities providing treatment for coronavirus can accept cash payment of Rs 2 lakh or more after receiving valid identity proof such as PAN card or Aadhaar of the patient and the payee andthe relationship between the patient and the payee by such healthcare facilities.The notification further said that hospitals, dispensaries, nursing homes, COVID-19 care centres, or similar other healthcare facilities providing treatment for coronavirus are being specified for the purpose of section 269ST of theIncomeTaxAct.This section of the Income Tax Act restricts any person from receiving an amount of Rs 2 lakh or more in cash, from a person in a day, in respect of a single transaction or in respect of transactions relating to one event or occasion from a person.
The norm wasintroduced by the central government in 2017 as a measure to curb black money.This exemption for receiving cash payment of over Rs 2 lakh amid COVID-19 treatment is made only for the period between April 1 -May 31, 2021, said the Income Tax department.
(Also Read:Traders' Body Seeks GST, Income Tax Relief Amid COVID-19 Second Wave)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.