RELAXATION IN SECTION 269 ST OF INCOME TAX ACT 1961

Considering a severe outbreak of the Covid Pandemic in India The Central Government has relaxed the provisions of Section 269ST of The Income Tax Act 1961 .

As per Section 269 ST there was a ceiling on receiving Cash Payments above Rs 2,00,000 but this ceiling has been lifted now for Hospitals, Dispensaries, Nursing Homes, Covid Care Centres or similar other medical facilities providing Covid treatment to patients. Medical Facilities can accept payments above Rs 2 lacs now by collection copy of PAN or Aadhar of the patients.

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 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