Medical Expenses Reimbursed by Employer

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 Dear Friends

Please tell me Medical Expenses Reimbursed by Employer to an Employee taxable or not?Please tell me what is the exemption limit and also under which section it comes?

Thanks In Advance

BINU.M.S

Replies (13)

Fully Taxable !!

 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.
Originally posted by :CA Dhirendra Singh
"

 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 be chargeable to tax without any ceiling limit( IN THE HANDS OF ALL EMPLOYEES).

"

 

 

Sir i think medical facilities provided by employer in the hospital maintained by employer is not taxable in the hand of employees. It is tax free.

Sorry if i am wrong.

Sathya you are right.

MR. SATYA,, THE PROBLEM WAS GIVEN ABOVE DEALS WITH REIMBURSEMENT OF MEDICAL EXPENDITURE  BY  EMPLOYER  SO  IT  WOULD BE  FULLY  TAXABLE. IF HE GETS TREATMENT IN SUCH A HOSPITAL WHICH IS MAINTAIN BY EMPLOYER THEN IT WILL BE TAX FREE.BOTH CASES ARE DIFFERENT.

medical expenses are taxable as they are reimbursed by the employer so it will fall in category of  PERQUISITES u/s 17(3)

"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."...

 

I think, the query falls in this category, as its nt mentioned by the asker...

 

So, it becomes taxable, for any amount exceeding Rs. 15000

Medical Reimbursement is tax free upto Rs.15000. It is taxable in case it is paid as allowance per month and not as reimbursement.

Ms. Barkha u r wrong..medical expenses incurred or reimbursed by employer are taxable over and above Rs.15000/- in case when medical treatment of employee or his family members is in any private hospital,nursing home or clinic in INDIA.Medical Facility if provided by employer who is company,aop,boi,firm is taxable in the hands of employer as FBT. So,Medical Reimbursements are Tax Free Perquisites for all whether specified employee or not. 

 AGREE WITH SWETA,ITS CORRECT

 reimbursement upto 15000 of medical is exempt(was earlier liable to fbt)

beyongd 15000 taxable

what about reimbursement of pre-employement medical expenses incurred by proposed employee when he/she gets the job in that company?? what will be the tax effect

 

say X paid 2000 for medical check up before employement and that amount will be reimbursed by company along with the first month salary of the employee .so whether this reimbursement will be taxable ?? if yes ? why? refer section if possible

If Cancer expencess reimbursed by employer  what limit of Exemption?


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