Due to the Covid-19 pandemic, the Ministry of Finance issued notification in this regard on Friday announcing relaxation for the Covid Care hospitals in Section 269ST of the Income Tax Act. In this article we will discuss on No income tax penalty on hospitals.
No income tax penalty
The central government has facilated Income Tax for the Covid hospitals, dispensaries, nursing home and Covid care centres of similar facilities for obtaining pcash of ₹2 lakh or above from the patients.
The Ministry of Finance published notification in this concern on Friday announcing relaxation for the Covid Care hospitals in Section 269ST of the Income Tax Act. But, the exemption for cash payment receipt is for the period of 1st April 2021 to 31st May 2021 only.
The Department of Revenue at the Ministry of Finance has published notification in this regard and stated that the central Government, in exercise of powers conferred by clause (iii) of Provision to Section 269ST of the Income-tax Act, 1961, hereby specifies hospitals, dispensaries, nursing homes, Covid Care Centre or similar other medical facilities providing Covid treatment to patients for the pertain of Section 269ST of Income-tax Act, 1961 for payment obtaining 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 equipments.
Further Relief by Central Government
Further, the central government Informing about the same, Income Tax Department also tweeted and stated, “providing 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 facilitated Covid treatment to patients to receive cash payments of Rs. 2 lakh or more,” adding, “Relaxation provided for the period 01.04.2021 to 31.05.2021, after received PAN or AADHAAR of patient & the payer.
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