Nod to cash payment for COVID bills over 2 lakh

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The easing was granted for payments received in cash between April 1 and May 31, on condition that those health care providers obtain the PAN or Aadhaar from both the patient and the recipient.

The government has notified changes to the income tax law to allow cash payments of more than 2 lakh for the treatment of COVID-19 patients in hospitals, clinics, nursing homes, centers COVID care or other similar medical facilities.

The easing was granted for payments received in cash between April 1 and May 31, on condition that those health care providers obtain the PAN or Aadhaar from both the patient and the recipient. Hospitals or nursing homes will also be required to establish the relationship between patient and recipient to allow such payments.

The provision banning cash payments over 2 lakh was introduced in 2017 in an attempt to curb the flow of black money, following the demonetization exercise that began in November 2016. A penalty of 100% is imposed to any person who has received such an amount in cash. . Several families affected by COVID-19, who did not have access to digital banking services, were struggling to pay their hospital bills because of the rule.

However, that respite is only available until the end of this month, according to the notification issued on Friday evening.


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