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Centre relaxes tax norms for cash payment of over Rs 2 lakh for Covid treatment

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Centre relaxes tax norms for cash payment of over Rs 2 lakh for Covid treatment

In a bid to provide relief to those affected by second wave of Covid-19 pandemic, Centre has allowed hospitals, nursing homes and covid care centres  to accept a cash payment of Rs 2 lakh and above for co id-19 treatment.

In a notification an issued Friday evening, the Income Tax department said hospitals and nursing homes are allowed to accept cash payments of Rs 2 lakh and more for the treatment of coronavirus-infected patients. The Central Board of Direct Taxes (CBDT), that frames policy for the department, issued the notification.

It said hospitals, dispensaries, nursing homes, COVID care centres or similar other medical facilities providing COVID-19 treatment to patients are being “specified for the purpose of section 269ST of the Income Tax Act”.

This section restricts any person from receiving an amount of Rs two 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.

It was introduced by the Union government in 2017 as a measure to curb black money.

The notification said the latest provision is being made for a period between April 1-May 31 “on obtaining the PAN or Aadhaar of the patient and the payee and the relationship between the patient and the payee” by such hospitals or COVID care centres.

Also Read: Life insurance companies record 45% growth in new business premium in April

Officials said the move was aimed to remove the hardship being faced by relatives and caregivers of coronavirus infected patients who visit the hospitals for treatment.

The country is grappling with the onslaught of a massive COVID-19 wave with a record over 4.14 lakh new infections and 3,915 deaths being reported in a span of 24 hours, as per the Union health ministry data updated on Friday.

India on Saturday 401,078 cases of the coronavirus disease (Covid-19) for a third consecutive time, taking the caseload to over 21.8 million, according to the Union health ministry’s dashboard.

(with PTI inputs)

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  1. Pingback: India seeks OPEC support to tackle oxygen shortage amid Covid surge

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