CBDT eases Income Tax norms for cash received by hospitals providing covid treatment.

The Central Board of Direct Taxes on 7th May 2021 has exempted Hospitals, Dispensaries, Nursing Home, Covid Care Centres and similar other medical facilities providing treatment to COVID19 patients, for the purpose of Section 269ST of Income Tax Act, for payment received in cash during 1st April 2021 to 31st May 2021 after obtaining PAN or AADHAR of patient and payer.

The provision of section 269ST, states that no person shall receive an amount of Rs. 2 Lakhs or more in aggregate from a person in a day; or in respect of a single transaction; or 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.

However due to the current pandemic, the board has relaxed the provisions of section 269ST of the Income Tax Act.