National

Nod for cash payment for COVID bills of over ₹2 lakh

Relatives of a woman suffering from the coronavirus disease (COVID-19), carry an oxygen cylinder as she receives treatment in the emergency room of Holy Family Hospital in New Delhi.   | Photo Credit: REUTERS

The government has notified changes to the Income Tax Act to allow cash payments of over ₹2 lakh for COVID-19 patients’ treatment at hospitals, dispensaries, nursing homes, COVID care centres or other similar medical facilities.

The relaxation has been granted for payments received in cash between April 1 and May 31, provided such healthcare providers obtain the PAN or Aadhaar of the patient and the payee. The hospitals or nursing homes will also be required to establish the relationship between the patient and the payee to allow such payments.

The provision to bar cash payments over ₹2 lakh was introduced in 2017 as an attempt to curb black money flows, following the demonetisation exercise that began in November 2016. A 100% penalty is levied on any person who has received such a sum in cash. Several COVID-19 affected families, who had no access to digital banking facilities, had been struggling to pay their hospital bills due to the rule.

However, this respite is available only till the end of this month, as per the notification issued on Friday night.


Our code of editorial values

Related Topics
This article is closed for comments.
Please Email the Editor

Printable version | Jun 22, 2021 10:01:57 AM | https://www.thehindu.com/news/national/nod-for-cash-payment-for-covid-bills-of-over-2-lakh/article34510226.ece

Next Story