CBDT exempts hospitals etc. providing Covid treatment from receiving cash in excess of Rs. 2 lakhs u/s 269ST

CBDT exempts hospitals etc. providing Covid treatment from receiving cash in excess of Rs. 2 lakhs limit u/s 269ST for the period from 01.04.2021 to 31.05.2021 on obtaining the PAN or AADHAAR of patient and payee

MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)

Notification No. 56/2021

New Delhi, the 7th May, 2021

(INCOME-TAX)

S.O.1803(E).—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.

[F.No. 225/58/2021-ITA.II]

PRAJNA PARAMITA, Director

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MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)

CORRIGENDUM

Notification No. 59/2021

New Delhi, the 10th May, 2021

(INCOME-TAX)

S.O. 1839(E).—In the Notification of the Government of India, Ministry of Finance, Department of Revenue, Central Board of Direct Taxes, published on 7th May,2021, vide S.O. 1803(E), in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (ii), “payee” is to be read as “payer”.

[F. No. 225/58/2021-ITA.-II]

PRAJNA PARAMITA, Director

ABCAUS Note: Section 269ST of the Income Tax Act 1961 puts a limit of less than Rs. 2 lakhs on cash transactions. In the event of contravention of the section, a penalty u/s 271DA has been provided equal to the amount of such transaction.

• Assessment itself is not a process to penalise assessee for earning undisclosed income – High Court
• Actual use of asset is not the sole test for allowability of depreciation – ITAT
• Object of assessment proceedings is not to find empirically correct solution on every fact issue – HC
• Penalty u/s 270A deleted as assessee filed revised computation during scrutiny
• Penalty u/s 271B for unfilled column 40 in Tax Audit Report Form 3CD deleted by ITAT