Notification No. 56/2021/F. No. 225/58/2021-ITA.II dated 7th May 2021
Income tax prohibits any person to receive an amount of Rs. 2 lakh and above in cash: (i) In aggregate from a person in a day, or (ii) In a single transaction, or (iii) In respect of transactions relating to one event or occasion from a person.
Vide notification no.56 of 2021, it is specified that Hospitals, Dispensaries, Nursing Homes, Covid Care Centres or similar other medical facilities providing Covid treatment to patients can receive payment in cash above Rs.2 lakh 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.