Allowing cash payments of over Rs 2 lakh to hospitals aimed at facilitating COVID patients: CBDT

The Income Tax department on Tuesday said its decision to allow hospitals, dispensaries and COVID care centres to accept cash payment in excess of Rs 2 lakh from patients or their kin has helped to facilitate patients during the pandemic. Refuting reports, the Central Board of Direct Taxes (CBDT) in a series of tweet clarified that it has not come out with any Circular where hospitals need to disclose the cash they receive to the I-T Department.

"CBDT has acted to facilitate patients during this pandemic. Provisions of section 269ST of IT Act have been relaxed to allow cash payments of more than Rs 2 lakh to hospitals for Covid treatment if the PAN or Aadhaar of the payer is provided," the I-T department tweeted.

The CBDT had last week allowed hospitals, dispensaries and COVID care centres to accept cash payment in excess of Rs 2 lakh from patients or their kin till May 31. However, such entities were required to obtain PAN or Aadhaar of the patient and the payer of the bill and also obtain the relationship between them.