The Income Tax Department, yesterday, stated that the news published on the web portal along with the headline ‘IT goes after hospitals over unaccounted cash is unsupported and unsubstantiated.
Previously, the portal announced that the Finance Ministry has given direction to the income tax officials to further investigate those cash transactions that have been done by private hospitals in the wake of the second wave of the Corona pandemic.
“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 
It is worthwhile mentioning and important to recall here the prevailing law on Income Tax that forbids cash payment beyond Rs 2 lakhs. Nevertheless, in the wake of the pandemic and for the purpose of providing relief to the panicked patients and their attendants, the Central Board of Direct Taxes (CBDT) has relaxed this Normand has given permission to the nursing homes and hospitals to accept cash over Rs 2 lakh for the purpose of Covid treatment till the date May 31, 2021.
On Monday, the aforesaid Board further released the corrigendum stating that indicated Hospitals, Covid Care Centres, Nursing Homes, Dispensaries, and so on that are treating Covid patients are hereby relieved for Section 269ST of the Income-tax Act,1961; however, it shall be applicable for the for payment that has been received in cash between 01.04.2021 to 31.05.2021.
