Hospitals / medical facilities providing COVID19 treatment to patients can now receive cash payments even higher than ₹ 2 lakh. Limit in section 269ST of IT Act relaxed, from 01.04.2021 to 31.05.2021. PAN – AADHAAR needed.

Govt vide Notification No. 56/2021-Income Tax Dated: 7th May, 2021 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.

Granting further relief in view of severe Covid pandemic, provisions of section 269ST of Income-tax Act,1961 relaxed by the Central Govt. Allows Hospitals/Medical facilities etc providing Covid treatment to patients to receive cash payments of Rs. 2 lakh or more.

Relaxation granted for the period 01.04.2021 to 31.05.2021, after obtaining PAN or AADHAAR of patient & the payer. Notification No.56/2021 in S.O. 1803(E) dt 07.05.2021 issued.

MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)
New Delhi

Notification No. 56/2021-Income Tax Dated: 7th May, 2021

S.O. 1803(E).—The Central Government, in 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* payer and the relationship between the patient and the payee by such Hospitals, Dispensaries, Nursing Homes, Covid Care Centres or similar other medical facilities.

[Notification No. 56/2021/F. No. 225/58/2021-ITA.II]

PRAJNA PARAMITA, Director

Also Read Corrigendum notification : CBDT issues corrigendum to notification related to Cash payment to hospital 

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One Comment

  1. GANDHI MOHAN BHARATI says:

    As usual, kneejerk reaction by the Government from time to time giving specific dates also. Why can’t they see reality and exempt emergency services from this section when the payer provides his PAN so that atleast he can survive.
    Has any MP or even a MLA ever experienced these sort of problems. On death bed we have to give proofs. Sad state of thinking in Government circles whosoever may be responsible. In the name of curbing the Government should not put lifes of citizens in jeopardy.

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