Chartered Accountant
508 Points
Joined February 2009
Valuation of perquisites in case of Medical Facility is provided in India: The taxable value of perks will be calculated in the following cases:
1) Hospital is maintained by the employer: If the Hospital is maintained by the employer then expenses incurred in connection with the facility provided to its employees or any member of his family will not be chargeable to tax without any ceiling limit( IN THE HANDS OF ALL EMPLOYEES).
2) Hospital is maintained by Central or State Govt., Local authority or any other person approved by the Govt.: In this case any expenses incurred or reimbursed by the employer for any treatment will not be chargeable to tax.
3) If hospital is maintained by a person approved by Chief Commissioner having regard to the prescribed guidelines then for the treatment of diseases given in Rule 3A(2), expenses incurred or reimbursed by the employer will not be chargeable to tax.(The employee should attach with his return of Income a certificate from the hospital specifying the nature of diseases as well as amount of expenses.)
4) Health Insurance premium paid or reimbursed by the employer will not be charged to tax.
5) Hospital is maintained by any other person not specified above(i.e. Private Hospital): Expenses incurred or reimbursed by the employer for any treatment will not be chargeableto tax upto Rs. 15,000.00. Any amount over and above Rs. 15,000.00 will be chargeable to tax sin the hands of employee. >
Valuation of perquisites in case of Medical Facility is provided out side India: Expenditure incurred or reimbursed by the employer in medical treatment of the employee or any member of his(employee’s) family is treated as perquisites subject to the condition given below:
1) Medical treatment of employee or any member of his family will be excluded from perquisites to the extent permitted by RBI.
2) Cost of travelling for the employee or any member of his family including for an attendant who accompanies patient is excluded from perquisites in case of employee whose gross total income before including the above expenditure as perquisites does not exceed Rs. 2,00,000.00.
3) Cost of staying abroad for the employee or any member of his family and one attendant should not be included in the perquisites to the extent permitted by RBI.