The Income Tax Department has allowed all hospitals and nursing houses in India to settle for cash funds over and above the earlier restrict of Rs 2 lakh solely for COVID-19 therapies. Hospitals can take such funds until May 31.
Hospitals, dispensaries, nursing houses, covid care centres and different medical amenities providing Covid-19 treatment are allowed to take over Rs 2 lakh cash below the brand new rule, which offers leisure from April 1 to May 31.
“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,” Tax Department stated.
According to the discover, the affected person may have to submit Permanent Account Numbers (PAN) or the Aadhaar identification quantity to profit from the brand new transfer. If the affected person’s relative or good friend is paying for the treatment, then the healthcare facility may have to take notice of their relationship.
Income Tax Act doesn’t enable a person to transact over Rs 2 lakh in cash in a single day. Therefore, the tax division has now supplied aid to Covid-19 sufferers, who want to pay for their medical payments that run into just a few lakhs.
Meanwhile, numerous hospitals are asking for cash funds from Covid-19 sufferers whereas refusing to admit on an insurance coverage foundation. Since the entire insurance coverage settlement course of takes numerous time, it’s higher to pay cash after which ask for compensation from the insurance coverage supplier in case the hospital will not be offering cashless treatment.
Allowing hospitals to take cash over 2 lakhs will subsequently assist many in getting high quality healthcare on a well timed foundation, thereby extra lives will likely be saved.
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