Presently entire country is engulfed in the pandemic and citizens are running towards Hospitals to save lives of their near and dears. At this juncture, Govt. has to come forward for all fiscal and non-fiscal reliefs. Govt. may be considering to extend the various dates under the Direct and Indirect Tax. However the provisions of section 269ST also require immediate relaxation, in the case of hospitals.


Section 269ST lays down:

No person shall receive an amount of two lakh rupees or more—

(a) in aggregate from a person in a day; or

(b) in respect of a single transaction; or

(c) in respect of transactions relating to one event or occasion from a person,

otherwise than by an account payee cheque or an account payee bank draft or use of electronic clearing system through a bank account or through such other electronic mode as may be prescribed.

Provided that the provisions of this section shall not apply to—

(i) any receipt by—

(a) Government;

(b) any banking company, post office savings bank or co-operative bank;

(ii) transactions of the nature referred to in section 269SS;

(iii) such other persons or class of persons or receipts, which the Central Government may, by notification in the Official Gazette, specify.


As per the said provision, hospitals can not accept Rupees Two Lacs in cash in a day from patient and cumulatively during the treatment of patient. Attendants/family member of the patients who arrange the cash by borrowing/from savings etc. to save the life patients are being not entertained at the hospitals due to the hardships resulting from the said provisions of the act.

Surprisingly, the Govt. has power to notify `the such persons or class of persons or receipts’ to exempt such persons from the clutches of this provisions, but this power has not been exercised till this date to exempt the hospitals from accepting cash. In absence of the relaxations, the attendants have to first run to the banks where they hold bank accounts and deposit the cash and request bank to make NEFT transfer, in the process of endangering the life of the patient, due to non-treatment.

At least for the time being, Govt. should forget the black money used, if any, for hospitalization and grant the relaxation.

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May 2021