HAVE YOU RECEIVE ANY MEDICAL FACILITY, THEN KNOW YOUR TAX IMPLICATIONS

HAVE YOU RECEIVE ANY MEDICAL FACILITY, THEN KNOW YOUR TAX IMPLICATIONS

ALOMOST EVERY EMPLOYER PROVIDE MEDICAL FACILITIES SAY MEDICAL PERQUISITE TO THEIR EMLOYEES FOR HEALTHY ENVIRONMENT AT THEIR WORKPLACE

IF ANY EMPLOYEE RECEIVES ANY MEDICAL FACILITY FROM HIS EMPLOYEE WHETHER IN THE FORM OF REIMBURSEMENT OR ANY FREE MEDICAL FACILITY IS TAXABLE AS PER INCOME TAX ACT, 1961

THE MEDICAL FACILITY MAY PROVIDE IN INDIA OR IN FOREIGN COUNTRIES, IN BOTH THE CASES THE TAX IMPLICATIONS ARE DISCUSSED BELOW,

1. IN CASE MEDICAL FACILITIES/TREATMENT PROVIDED IN INDIA

1. EXPENDITURE INCURRED OR REIMBURSED ON ANY MEDICAL TREATMENT PROVIDED TO AN EMPLOYEE OR ANY MEMBER OF HIS FAMILY IS FULLY EXEMPT WITHOUT ANY LIMIT FOR TREATMENT IN ANY HOSPITAL, DISPENSARIES etc. MAINTAINED EITHER BY EMPLOYER, GOVERNMENT, ANY LOCAL AUTHORITIES, IN HOSPITALS APPROVED BY GOVERNMENT OR APPROVED HOSPITALS FOR ANY SPECIFIED DISEASE LIKE CANCER HOSPITALS
2. HEALTH INSURANCE PREMIUM INCURRED OR REIMBURSED FOR INSURANCE ON HEALTH OF EMPLOYEES OR NAY MEMBER OF HIS FAMILY IS FULLY EXEMPT WITHOUT LIMIT.
3. REIMBURSEMENT BY THE EMPLOYER OF ANY AMOUNT ACTUALLY SPENT BY EMPLOYEE FOR OBTAINING HIS OR HIS FAMILY MEMBER’S TREATMENT IN ANY HOSPITAL OTHER THAN ABOVE, NURSING HOME OR IN A CLINIC IS NOT TAXABLE BUT UPTO MAXIMUM OF Rs 15,000 OR 20,000 I CASE OF SENIOR CITIZEN

2. B. IN CASE MEDICAL FACILITIES/TREATMENT PROVIDED OUTSIDE INDIA

1. SUCH MEDICAL EXPENSES SHALL BE TAX FREE TO THE EXTENT PERMITTED BY RBI
2. EXPENSES ON STAY ABROAD OF THE EMPLOYEE OR ANY MEMBER OF HIS FAMILY FOR MEDICAL TREATMENT WITH ONE ATTENDENT WHO ACCOMPANIES THE PATIENT IN CONNECTION WITH SUCH TREATMENT, TO THE EXTENT PERMITTED BY RBI
3. TRAVEL EXPENSES OF PATIENT (EMPLOYEE OR HIS FAMILY MEMBER) AND ONE ATTENDENT WHO ACCOMPANIES THE PATIENT IN CONNECTION WITH SUCH TREATMENT SHALL BE EXEMPT, IF GROSS TOTAL INCOME (EXCLUDING SUCH TRAVEL EXPENSES BUT AFTER INCLUDING TAXABLE MEDICAL AND BOARDING) BUT DOESNOT EXCEEDS Rs 2,00,000

FAMILY FOR THE VALUATION OF MEDICAL FACILITIES MEANS 1. SPOUSE AND CHILDREN OF THE EMPLOYEE WHETHER DEPENDENT OR NOT

2. PARENTS, BROTHERS AND SISTERS OF THE EMPLOYEE WHO ARE MAINLY DEPENDENT ON EMPLOYEE

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