taxability of medical reimbursement for other than empanelled Hospital
So amount reimbursed to the employee by the employer for the medical facility is taxable in the hands of employee except the expection mentioned below under the Income Tax Act? If Yes, What other precautions should an employer should take ?
As per proviso to Section 17(2) point No. 2 (a) the expenses incurred by the employer on the medical treatment of the employee and and his employees shall be fully tax free if Expenditure actually incurred by employee on his or his family members medical treatment in respect of prescribed diseases or ailments as prescribed in rule 3A of the Income Tax Rules, in any hospital approved by the Chief Commissioner of the Income Tax having regard to prescribed guidelines.
So it other than empanelled hospital is covered in the list of Hospitals approved by CCIT and disease or ailment is also falls under the ailments prescribed under rule 3A then the medical reimbursement what an employee has get is Exempt under Income Tax Act.
Can somebody clarify that is it correct?
CAclubindia
