The Income Tax Department on Friday issued a notification allowing hospitals and nursing homes to accept cash payments of Rs 2 lakh and more for the treatment of Covid-19 patients.

The government has had introduced Section 269ST of the Income Tax Act in 2017 to curb black money in the economy. This section restricts any person from receiving an amount of Rs two lakh or more in cash, from a person in a day, in respect of a single transaction or in respect of transactions relating to one event or occasion from a person.

The notification said the relaxation in this provision is being made for a period between April 1-May 31 "on obtaining the PAN or Aadhaar number of the patient and the payee and the relationship between the patient and the payee" by such hospitals or COVID care centres.

Officials said the step had been taken as relatives and caregivers of Covid-19 patients were facing problems in these unprecedented times.