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Cash receipt limit for hospital and pharmacy stores

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Kollipara Sundaraiah

B.com

3025 Points Posted on 02 February 2023

it assessess maintained a private hospital including pharmacy stores .
question:
1.assesses cash receipt limit from one patients hospital and pharmacy stores amount received.

Replies (3)

Quick Summary

This discussion clarifies the cash receipt limit for private hospitals and pharmacy stores in relation to Section 269ST of the Income Tax Act. Generally, accepting cash amounts of Rs. 2 lakhs or more in a single day, transaction, or event is prohibited unless paid via account payee cheque, draft, or electronic transfer. This limit is crucial for avoiding penalties under the Act.

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

212444 Points Posted on 02 February 2023

Anything below Rs. 2 lakhs... Otherwise, sec. 269 ST of IT act gets triggered.

CA Rashmi Gandhi

Chartered Accountant

86505 Points Posted on 04 February 2023

Maximum amount below 200000 can be accepted.

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

212444 Points Posted on 05 February 2023

The provision of section 269ST"
No person shall receive an amount of two lakh rupees or more-
(a) in aggregate from a person in a day; or
(b) in respect of a single transaction; or
(c) in respect of transactions relating to one event or occasion from a person,
otherwise, than by an account payee cheque or an account payee bank draft or use of electronic clearing system through a bank account.

Provided that the provisions of this section shall not apply to-
(i) any receipt by-
(a) Government.
(b) any banking company, post office savings bank or co-operative bank.

(ii) transactions of the nature referred to in section 269SS;

(iii) such other persons or class of persons or receipts, which the Central Government may, by notification in the Official Gazette, specify.