There are lots of facilities which the employees can avail from their employer and not even liable to pay tax on the same. The one of such kind is medical facility and reimbursement of medical expenses for self and dependant family members.

Medical treatments in respect of the following are fully exempt in the hands of employees:

• The value of any medical treatment provided to the employee in any hospital maintained by the employer.

• Any sum paid by the employer in respect of any expense actually incurred by the employee for medical treatment of self & dependant family members.

(a) in any government hospital or other specified hospital.

(b) in respect of prescribed diseases or ailments in any approved hospital.

• Any sum of insurance premium paid for insurance of the health of the employee under a specified scheme.

• Any reimbursement by employer of insurance premium paid by the employee, for health insurance of self or family member under a specified scheme.

• Any sum paid by the employer in respect of any expenditure actually incurred by the employee for medical treatment in any hospital for any diseases (either the hospital or the disease is not prescribed) is exempt upto Rs. 15,000 in the previous year.

Medical treatment outside India

The following expense incurred by the employer on treatment of the employee or family member outside India is also tax free perquisite.

• Medical treatment of the employee or dependant family member shall be exempt from tax to the extent permitted by the RBI.
• Expenses on stay abroad of the employee or dependant family member and one attendant in connection with the treatment is exempt upto the limit permitted by the RBI.

In addition to above, an employee can avail exemption of traveling expenses of the patient and attendant, if his gross total income before including such expenses does not exceeds Rs. 200,000.

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