Hospitals To Accept Cash Payment Of Rs 2 Lakh And Above For Covid Teatment

The second wave of Covid 19 infections is currently ravaging India. The central government has relaxed income tax rules for Covid hospitals, dispensaries, nursing homes, and similar facilities that receive cash payments of Rs 2 lakh or more from patients.

The Central Direct Tax Board released a notice that the patient's PAN and payee, as well as their relationship, should be obtained for these transactions. The mentioned relaxation is applicable from 01.04.2021 to 31.05.2021.

"The Central Government .... hereby specifies Hospitals 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 April 1, 2021, to May 31, 2021, on obtaining the PAN or AADHAAR of the patient and the payee and the relationship between the patient and the payee...," the CBDT said.

Tax practitioners have expressed their support for the move. Nursing homes and other long-term care facilities will be exempt from the new law.

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."

Disclaimer: The views and recommendations expressed are solely those of the individual analysts or entities and do not reflect the views of GoodReturns.in or Greynium Information Technologies Private Limited (together referred as “we”). We do not guarantee, endorse or take responsibility for the accuracy, completeness or reliability of any content, nor do we provide any investment advice or solicit the purchase or sale of securities. All information is provided for informational and educational purposes only and should be independently verified from licensed financial advisors before making any investment decisions.