18 August 2011
1) The employee (indian resident )incurred medical expense out side india. Can he claim that exemption India? 2)Blood purchased for an operation. Can he claim as medical expense?
18 August 2011
1.Expenditure on medical treatment outside India
In certain situations expenditure incurred by the employer on treatment of the employee or his family members outside India is treated to be a tax free perquisite. Expenses on medical treatment of the employee or any member of his family incurred outside India shall be tax free perquisite to the extent permitted by Reserve Bank of India. Expenses incurred on the attendant who accompanies the patient in connection with the treatment of the employee shall also be tax-free perquisite to the extent admitted by Reserve Bank of India. Expenses relating to traveling of the patient and one attendant who accompanies the patient shall be tax-free perquisite in the case where the gross total income of the patient does not exceed Rs. 2,00,000/- (Rs. Two Hundred Thousands). In other words, if the gross total income exceeds Rs. 2,00,000/- the traveling expenses of the patient as well as the attendant shall become a taxable perquisite.