Income tax

WHAT ARE THE CONDITIONS FOR MEDICAL FACILITIES TO QUALIFY AS TAX FREE PERQUISITES?

Medical Facilities For Employees In India [Provision to Section 17(2)]

Expenditure on medical treatment in India

• In certain cases medical facilities are treated as tax free. When an employee is granted medical facilities or his family members are granted medicalfacilities in any hospital, dispensary or nursing home maintained by the employer ,in such a situation medical perquisites are treated as tax-free perquisites.
• In case of reimbursement by the employer of an amount actually spent by the employee for obtaining medical treatment for himself or his family members is a tax free perquisites up to a ceiling of Rs. 10,000/- p.a. This ceiling has been raised to Rs.15,000/- from the assessment year 1999-2000. However in the following cases medical treatment of the employee and his family members shall be fully tax free even if the amount paid or reimbursed exceeds these specified limit of Rs.15,000/- as mentioned above :
  • Actual expenditure incurred by employee on himself or his family's medical treatment in a Government Hospital or in a hospital approved by the Government for its employees.
  • Expenditure incurred by the employee on himself or his family member's medical treatment in respect of prescribed diseases in a hospital approved by the Chief Commissioner of Income Tax. To avail the benefit under this Section the employees has to attach, alongwith his return of income, a certificate from the hospital specifying the disease for which medical treatment was required and the receipt for the amount paid to the hospital.
  • http://www.tax4india.com/salary-and-perquisites/medical-facilities.html

PL see Income tax official web site

http://www.incometaxindia.gov.in/publications/1_Compute_Your_Salary_Income/1_Income_from_salary.asp#WHAT%20ARE%20THE%20CONDITIONS%20FOR%20MEDICAL%20FACILITIES%20TO%20QUALIFY%20AS%20TAX%20FREE%20PERQUISITES?