CBDT notifies relaxation in Cash Payments of more than 2 Lakhs

The Central Board of Direct Taxes (CBDT) has notified relaxation in Cash Payments of more than 2 Lakhs for Hospitals amid COVID19 vide Notification No. 56/2021 dated 07/05/2021.

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.

Note :  “payee” is to be read as “payer” - Notification No. 59/2021 dated 10/05/2021

Provisions of section 269ST as per Income-tax Act, 1961:

No person shall receive an amount of two lakh rupees or more—

(a) in aggregate from a person in a day; or

(b) in respect of a single transaction; or

(c) 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 ¹²[or through such other electronic mode as may be prescribed]:

Provided that the provisions of this section shall not apply to—

 (i)  any receipt by—

(a) Government;

(b) any banking company, post office savings bank or co-operative bank;

(ii)  transactions of the nature referred to in section 269SS;

(iii) such other persons or class of persons or receipts, which the Central Government may, by notification in the Official Gazette, specify.

Explanation.—For the purposes of this section,—

(a) "banking company" shall have the same meaning as assigned to it in clause (i) of the Explanation to section 269SS;

(b) "co-operative bank" shall have the same meaning as assigned to it in clause (ii) of the Explanation to section 269SS.

  Report