The Central Board of Direct Taxes (CBDT) vide its Notification No 56/2021 dated 07th May 2021 exempted the provisions of Section 269ST of Income Tax Act, 1961 for Hospitals, Dispensaries, Nursing Homes, Covid Care Centres or similar other medical facilities providing Covid treatment to patients, 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 during the period from 01-Apr-2021 to 31-May-2021.
Section 269ST of Income Tax Act, 1961 restricts any person from receiving cash more than two lakhs rupees or more from a person in a single day or in respect of a single transaction or in respect of one event or occasion.
The full text of the notification is as follows:-
MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)
NOTIFICATION
New Delhi, the 7th May, 2021
(INCOME-TAX)
S.O. 1803(E).—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.
[Notification No. 56/2021/F. No. 225/58/2021-ITA.II] PRAJNA PARAMITA, Director
