As per of circular no 603 dated 06/06/1991 on valuation of perquisites in the form of reimbursement of medical expenses/provisions of medicals facilities by an employer clause (i) Where the medical treatment is availed at hospitals, clinics, etc., maintained by the employer......... clause (iv) Where the medical treatment is availed of from any doctor outside the institutions/schemes mentioned in (i) to (iii) above, an expenditure of upto Rs. 10,000 ( Rs.15000/- now) in a year, in the aggregate; same will not be included in the taxable salary of the employee.
In a case where the treament is availed at the hospitals, clinics, etc., maintained by the employer but the medicines prescribed by the hospitals,clinics ( in case of non availablity of the same at the said hospitals, clinces) are purchased from the outside on the advise of such hospitals, clinics and the same is reimbursed by the employor, whether the same will be taxable and covered by clause (iv) of the above circular?
If it is taxable, can the employer pay the tax on behalf of the employee?
Kindly reply.
CAclubindia
