Situation

Description

Perquisite Value

A

Medical facility in a Hospital maintained by the employer

Medical expenses incurred in this instance is not chargeable in the hands of the employee, but is chargeable as Fringe Benefit Tax in the hands of the employer

B

Medical Treatment in India

Expenditure tax exempted up to Rs. 15,000/- in case of treatment taken at any Hospital/ Clinic etc. However it is fully tax free in the following cases:-

• Expenditure incurred by an employee/ his family members at any Hospital maintained by Govt./ Local authority/ approved by govt.

• Expenditure incurred by an employee/ his family members in respect of treatment of diseases specified in Rule 3A of Income Tax Rules’ 1962/ Hospital approved by Chief commissioner of Income tax.

• Any portion of Insurance premium either paid by the employer or reimbursed to the employee for the Health Insurance of his employee under a scheme approved by central Govt./ IRDA.

C

Medical Treatment outside India

Following expenditure incurred will be treated tax free in the hands of the employee:

• Expenditure incurred on medical treatment on himself/ family members to the extent permitted by RBI.

• Expenses on staying abroad of the employee/ any member of his family along with one attendant to the patient to the extent permitted by RBI.

• If the Gross total income of the employee before including the taxable medical perquisite for travel expenditure exceeds Rs. 2,00,000/-, then whole of such expenditure on treatment becomes taxable.