VALUATION of MEDICAL FACILITIES

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Venkateswara Rao Sapare (Querist)

24 June 2010 VALUATION of MEDICAL FACILITIES

Is the perquisite in the following instances not chargeable, as all the instances are taken place in the case of Mr.X, an employee, in a period of single financial year? Here, attention is required on the words underlined, once again.

1. First he got a Medical facility valued Rs.2,00,000 in a Hospital maintained by the employer in Chennai.
2. The employer reimbursed the expenditure Rs.3,50,000, incurred by the employee on medical treatment of his spouse, in a hospital maintained by the Government in Hyderabad.
3. The employer reimbursed the expenditure of Rs.15,000 spent by the employee in obtaining medical treatment for his brother ( a member of the family) from a doctor in Delhi. ( Let us remember, that this limit of Rs.15,000 is in such a case where treatment is given by any doctor.)

Now, total medical expenses reimbursement comes to Rs.5,65,000 (Rs.2,00,000 + Rs.3,50,000 + Rs.15,000 ).

Is this Rs.5,65,000/- perquisite non taxable?
Do the lines in the act not encourage to infer so?

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)

24 June 2010
Point No.1. It is exempted as per sec.17a medical facility in hospital maintained by the employer

Point No.2 It need to be check the treatment taken for diseaes and aliments apporved by the Cheif commissioner for exemption claim. beacause this point satisfies thee Sec.17(b)(i) only not (ii)so please check the same

Point No.3. Rs.15000 exempted as per sec.17(d)

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