The income tax department has today made a statement that the news published in a portal with the headline ‘IT goes after hospitals over unaccounted cash’ is unsubstantiated. Earlier, the portal reported that the Finance Ministry has directed the income tax officers to investigate the cash transactions carried out by the private hospitals during the pandemic to treat covid patients.
“The Finance Ministry has not issued any directive to CBDT in this regard. Further, unlike as reported, the CBDT has not come out with any Circular where hospitals need to disclose the cash they receive to the IT Department,” the income tax department said in a statement.
“Unlike, as alleged in the report, CBDT has acted to facilitate patients during this pandemic. Provisions of section 269ST of ITAct have been relaxed to allow cash payments of more than Rs. 2 lakh to hospitals for Covid treatment if the PAN or Aadhaar of the payer is provided,” it added.
Income tax law prohibits cash payments beyond Rs 2 lakhs. However, on Friday, the Central Board of Direct Taxes (CBDT) relaxed this norm considering the emergency situation due to the covid-19 second wave and permitted the hospitals and nursing homes to accept cash over and above the limit of Rs 2 lakh for Covid treatment till May 31.
On Monday, the Board further came with a corrigendum stating that specified 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.
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