Finance Ministry relaxes cash payment cap of Rs 2 lakh in COVID-19 treatment

On Friday, the Ministry of Finanace exempted hospitals, dispensaries, nursing homes, COVID Care Centres or similar other medical facilities providing treatment to COVID-19, for the purpose of Section 269ST of Income Tax Act for payment received in cash from April 1, 2021, to May 31, 2021, on obtaining the PAN or AADHAAR of the patient. This has been exercised under the provision (iii) to Section 269ST of the Income-tax Act,

 

The exemption is for Hospitals, Dispensaries, Nursing Home, Covid Care Centres or similar other medical facilities providing treatment to Covid patients, for receiving cash exceeding Rs 2 Lakhs

Section 269ST of the Income-tax Act,1961 

This section prohibits any person to receive an amount of Rs.2 lakh and above in cash. As per the income tax department the one instalment of loan repayment shall constitute a single transaction. And so if the single loan instalment amount is less than Rs.2 lakh, it can be paid in cash. All the instalments paid for a loan shall not be aggregated for the purposes of determining the applicability of the Rs.2 lakh limit. The section further has three clauses:

(i) In aggregate from a person in a day

(ii) In a single transaction

(iii) In respect of transactions relating to one event or occasion from a person

Earlier, Government, any banking company, post office savings bank, co-operative bank and other persons/receipts as may be notified were excluded from the scope of section 269ST.

Finance Ministry on COVID Second Wave

As the country is currently witnessing the deadly outbreak of the second wave of the COVID-19 crisis, the finance ministry released its monthly economic report. The ministry said that the impact of the second wave on the economy is likely to remain muted as compared to the first wave. It admitted that in the first quarter of FY2021-22 the second wave has posed a downside risk to economic activity.

As per the report, 'there are reasons to expect a muted economic impact as compared to the first wave. Learning to 'operate with COVID-19', as borne by international experience, provides a silver lining of economic resilience amidst the second wave'. It added that with a revival in the economic activities during the second half of FY2020-21, the central government's fiscal position has witnessed an improvement in recent.

COVID Cases in India

As per Union Health Ministry, India reported 4,14,188 new COVID19 cases, 3,31,507 discharges, and 3,915 deaths in the last 24 hours.

• Total cases: 2,14,91,598
• Total recoveries: 1,76,12,351
• Death toll: 2,34,083
• Active cases: 36,45,164
• Total vaccination: 16,49,73,058

(Image Credits: PTI)