Medical Facility Perk

Medical Facility

Medical Facility [Proviso to Sec. 17(2)]

Medical facility is taxable asunder:

a) Medical facility provided in India

Case	Treatment
Medical facility provided to the employee or his family in a hospital, clinic, dispensary or nursing home maintained by the employer.	Fully Exempted
Reimbursement of medical bill of the employee or his family of - a. Any hospital maintained by Government or Local Authority; or b. Any hospital approved by the Government for its employee.	Fully exempted
Payment/reimbursement by employer of medical expenses incurred by an employee on himself / his family in a hospital, which is approved by the CCIT, for the prescribed diseases (like Cancer, TB,AIDS, etc.)	Fully exempted
Group medical insurance (i.e. Mediclaim) obtained by the employer for his employees	Fully exempted
Any reimbursement by employer of any insurance premium paid by the employee, for insurance of his health or the health of any member of his family	Fully exempted
Reimbursement of any medical bill whether for employee or for his family member	Exempted up to Rs.15000

b) Medical facility provided outside India

Case	Treatment
Medical Expenditure	Exempted to the extent permitted by RBI.
Cost of stay abroad (Patient + One Attendant / Caretaker)	Exempted to the extent permitted by RBI.
Cost of travel (Patient + One Attendant / Caretaker)	Exempted only when gross total Income of the employee excluding this (cost of travel) perquisite, does not exceed Rs.200000 p.a.

Notes

a. Hospital includes a dispensary, a clinic or a nursing home.

b. For this purpose "family''means:

-Spouse, children of the individual;and

-Parents, brothers, sisters of the individual, wholly or mainly dependent on him.

c. Fixed Medical Allowance is fully taxable.

d. The expenditure on medical treatment by the employer may be by way of payment or reimbursement.

e. The perquisite is taxable in the hands of specified employee, however if the bills are issued in the name of employee and reimbursed by the employer, then it shall be taxable in the hands of all employees.