Income Tax Act, Sec 17(2)(ii)(b) Approved Hospitals

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Discussion questions effectiveness of Sec 17(2)(ii)(b) on approved hospitals for tax free medical benefits, highlighting lack of monitoring after approval and seeking clarity on compliance and registration procedures.

Venkateswara Rao Sapare

Venkateswara Rao Sapare (Querist)
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24 June 2010 Income Tax Act, Sec 17(2)(ii)(b) – defunct ?

Payments ( Medical expenses) made by the employer to the Hospitals ( Dispensary / Clinic / Nursing Home) which is approved by the Chief Commissioner Section 17 (2)(ii)(b) of Income Tax Act., in connection with the medical treatment of the employee or any member of his family for treatment of prescribed diseases or ailments, shall not be treated as perquisite.

The commissioner shall satisfy himself in granting approval to any hospital for the above cited purpose, on the condition that it fulfils the specified requirements.

In practice, once approval is granted, no Hospital ( Dispensary / Clinic / Nursing Home) is bothered to observe the requirements as long as it claims as Approved Hospital u/s 17 (2)(ii)(b) of Income Tax Act, since the Commissioners of Income Tax are no more serious about their approval granted by them, even they never take pain to periodically authenticate the same, which propels the beneficiaries to have impression that what is the fun of continuing with this defunct provisions in the subject section.

Mansi Almeida

Mansi Almeida (Expert)
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09 January 2017 What are procedural/ compliance requirements for obtaining this registration?