Covid Hospitals Can Accept Cash Against Bills – Restrictions Relaxed
As per section 269ST of the Income-tax Act, any person is barred from accepting a cash amount exceeding ₹ 2 lacs against any kind of transaction. Such bar is applicable to an aggregate transaction in a day, a single transaction from a person, transactions relating to a single event or an occasion. A violation of this provision attracts a penalty of the amount equal to the cash amount received. However, this provision does not apply to Government, any banking company, post office savings bank, co-operative bank, or any other person as notified by the Central Government.
Using the last exception as above, the Central Government has issued a notification on 07/05/2021, exempting covid treatment facilities as above for accepting cash payments of more than ₹2 lacs. The hospitals, dispensaries, nursing homes, covid care centers now can accept cash payments above ₹2 lacs for a period of 01/04/2021 to 31/005/2021. So, in case any of these entities receive the notice of penalty in the future, they may take benefit of this notification.