After asking the Delhi High Court earlier today to consider easing the 2-cash cash transaction restriction to help patients with COVID, the central government issued a cash notice facilitating the payment of 2-lakh cash to hospitals for COVID treatment. a.
All hospitals, nursing units, dispensaries and COVID care centers will be able to accept cash in excess of HRK 2 million from the patient’s family. The exemption will apply to all transactions made between April 1 and May 31 this year.
Secton 269ST of the Income Tax Act, 1961, prohibits any cash transaction of 2 easier in one day. The provision, introduced in 2017, also contains penal provisions for violating the section in question.
The Ministry of Finance gazette states: “The Central Government, in exercising the powers conferred by Clause (iii) of the Provision Section 269ST of the Income Tax Act 1961, hereby designates hospitals, dispensaries, nursing homes, care centers, COVID centers or similar medical facilities. providing treatment to COVID patients for the purposes of Section 269ST of the Income Tax Act, 1961 for payment received in cash from 01.04.2021 to 31.05.2021, upon receipt of PAN or Aadhaar for the patient and the payee and the relationship between the patient and recipients of payments from such hospitals, clinics, nursing homes, COVID care centers or similar other medical facilities. ”
It is clear from the notification that in order to receive cash in the amount of HRK 2 million, three conditions must be met. The patient’s PAN and Aadhaar must. If the payment is made by a relative of the patient, then the PAN and the Aadhar of the payee will be required to make such payments. Also, the relationship of the payee with the patient must be reported.
CA Ved Jain, former president of the Institute of Chartered Accountants of India (ICAI), told Business Today, “Given the crisis of the century, the approach should be very liberal. The circular should have given a general exemption without any conditions.”
“Now from where the patient gets PAN, Aadhaar if not easily available. Immediate treatment is far more important. There may be cases that not one, but many relatives give their contribution to the treatment of one patient. How will this condition be respected in such cases “, added Jain.
Earlier today, the Delhi High Court heard a request seeking relaxation under section 269 of the 1961 IT Law. The court asked the finance ministry to announce this on Monday.