Covid 19 treatment cash payment limit: In a major relief to Covid 19 patients and their family members, the Income Tax Department has permitted hospitals and nursing homes to take cash above Rs 2 lakh or more for coronavirus treatment. 

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"Granting further relief in view of severe Covid pandemic, provisions of section 269ST of  Income-tax Act,1961 relaxed by the Central Govt allows Hospitals/Medical facilities etc. providing Covid treatment to patients to receive cash payments of Rs. 2 lakh or more, " said Income Tax India. 

Hospitals have been permitted to take such payments till May 31.    

Hospitals, dispensaries, nursing homes, covid care centres and other medical facilities offering Covid-19 treatment are allowed to take over Rs 2 lakh cash under the new rule, which provides relaxation from April 1 to May 31.  

"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," Income Tax Department further said.  

The patient will have to submit Permanent Account Numbers (PAN) or the Aadhaar identification number to avail this benefit. If the patient’s relative or friend is paying for the treatment, then the healthcare facility will have to take note of their relationship.  Income Tax Act doesn’t allow an individual to transact over Rs 2 lakh in cash in a single day. Therefore, the tax department has now provided relief to Covid-19 patients, who need to pay for their medical bills that run into a few lakhs.