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Perquisites Valuation of Medical Facilities [Proviso to Section 17(2)]

(A). Medical Facilities / Reimbursement in INDIA

The provisions are given below—

1. Employer’s hospital/Government hospital/approved hospital -

The perquisite in respect of medical facility provided by an employer in the following hospitals/clinic is NOT Chargeable to Tax

  1. hospital owned/maintained by the employer,

  2. hospital of Central Government/State Government/local authority,

  3. private hospital if it is also recommended by the Government for the treatment of Government employees,

  4. specified medical facility (given in rule 3A) in a hospital approved* by the Chief Commissioner.

2. Health insurance premium -

Medical insurance premium paid or reimbursed by the employer is NOT Chargeable to Tax.

3. Any other facility in India -

Any other expenditure incurred or reimbursed by the employer for providing medical facility in India is chargeable to tax (exemption of Rs. 15,000 was available for such reimbursement up to the assessment year 2018-19).

(B). Medical Facilities Outside INDIA

Any expenditure incurred by the employer (or reimbursement of expenditure incurred by the employee) on medical treatment of the employee or any member of the family of such employee outside India, is taxable subject to the conditions given below —

1. Perquisites Not Chargeable to Tax

  • Medical treatment of employee or any member of family of such employee outside india

  • Cost on travel of the employee/any member of his family and one attendant who accompanies the patient in connection with treatment outside India

  • Cost of stay abroad of the employee or any member of the family for medical treatment and cost of stay of one attendant who accompanies the patient in connection with such treatment

Condition to be satisfied

  1. Expenditure shall be excluded from perquisite only to the extent permitted by the Reserve Bank of india

  2. Expenditure shall be excluded from perquisite only in the case of an employee whose gross total income, as computed before including therein the expenditure on travelling, does not exceed Rs. 2,00,000

  3. Expenditure shall be excluded from the perquisite only to the extent permitted by the Reserve Bank of India

Contents : Salary Income

 Important Links....for calculating Salary Income

(A). Salary -Definition & Meaning
(B). Provident Fund
(C). Allowance
(D). Perquisites
(E). Profit in lieu of Salaly
(F). Retirement Benefits
(G). Deductions
(H). Table Presentation of Salary Income (Section 15 to 17)
 
 
 
 
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