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Income tax laws have been relaxed, allowing you to pay in cash for Covid treatment worth Rs 2 lakh or more.

Income tax laws have been relaxed, allowing you to pay in cash for Covid treatment worth Rs 2 lakh or more.

income tax laws

Hospitals, pharmacies, and COVID-19 treatment centres will accept cash payments of more than Rs 2 lakh from patients or their family members until May 31, the government announced on Friday. According to the Central Board of Direct Taxes (CBDT), such entities would be required to obtain the patient’s and payee’s PAN or Aadhaar numbers, as well as their relationship.

“The Central Government 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 between April 1, 2021, and May 31, 2021, on obtaining the patient’s PAN or AADHAAR and the relationship between the patient and the payee and the relationship between the patient and the payee and the relationship between the patient and the pay

income tax
Shailesh Kumar, a partner at Nangia & Co LLP, said that in the current situation, various hospitals and nursing homes have demanded payment in cash for COVID-19 care. Section 269ST of the Income Tax Act, however, prohibits cash payments in excess of Rs 2 lakh.

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“In light of the exceptional pandemic situation, in which saving people’s lives is paramount, and in light of people’s real suffering, the government has released the current notification authorising people to make cash payments for COVID care well beyond this cap.”

“The notice applies to all cash payments made on or after April 1, 2021, until May 31, 2021,” Kumar added.

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