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Direct Tax(Income from Salary)

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suman shil

Working professional

34 Points Posted on 10 August 2025

Pre-hospitalization and post-hospitalization expenses are reimbursed by a Central PSU. My question is whether this is treated as a perquisite or an allowance. If so, what is the treatment of this during income tax return filing? Does any case study exist on this?

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Quick Summary

This discussion explores whether reimbursements for pre and post-hospitalisation expenses from a Central PSU are considered a perquisite or an allowance for income tax purposes. The general consensus suggests these are often treated as tax-free perquisites. It's advised to check Form 16 for definitive treatment and how to declare this during income tax return filing.