Govt eases Income Tax rules; you can pay cash above Rs 2 lakh for COVID treatment

Govt eases Income Tax rules; you can pay cash above Rs 2 lakh for COVID treatment
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The Centre on Friday allowed hospitals, dispensaries and COVID-19 care centres to accept cash payments exceeding Rs 2 lakh.

These may be from patients or their kin till May 31. The Central Board of Direct Taxes (CBDT) issued a notification on the same. It said that such entities would obtain PAN or Aadhaar of the patient and the payee and also the relationship between them.

As per Nangia & Co LLP Partner Shailesh Kumar, currently various hospitals and nursing homes have been demanding payment in cash for treatment of COVID-19.

But the income tax law does not permit cash payments beyond Rs 2 lakh.

The decision comes in the wake of the extraordinary pandemic situation in India.

Now this change will allow people to make cash payment for treatment of COVID even beyond this limit.

This notification will be applicable for all cash payments made on/ after 1st April 2021 till 31st May 2021.

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