199. Valuation of perquisites in the form of reimbursement of medical expenses/provisions of medical facilities by an employer
Circular No. 603 was issued by the Central Board of Direct Taxes on 6 June 1991. Its subject is 199. Valuation of perquisites in the form of reimbursement of medical expenses/provisions of medical facilities by an employer.
Consolidates, in supersession of Circular No. 376 dated 6 January 1984, Circular No. 445 dated 31 December 1985, Circular No. 481 dated 20 February 1987 and all other instructions on the subject, the cases in which employer-paid medical expenditure is not taxable salary. Payment or reimbursement by an employer of medical treatment of the employee, his spouse, children or parents, including free or concessional treatment, is left out where the treatment is at a hospital or clinic maintained by the employer; at a hospital maintained by Government or a local authority or approved for the Central Government Health Scheme or Central Medical Scheme, a list of which supplied by the Ministry of Health and Family Welfare on 11 April 1991 is annexed; where the expenditure is on medical insurance premia; where treatment is from a doctor outside those institutions and schemes, up to Rs. 10,000 in the aggregate in a year; and where treatment is at a hospital outside India, covering treatment, travel and stay abroad and the travel and stay of one attendant, to the extent permitted by the Reserve Bank of India, with the qualification that travel expenditure is excluded where the employee's gross total income, computed without the amount paid or reimbursed for treatment abroad, exceeds Rs. 1,00,000. It applies from assessment year 1991-92 onwards.
The Board consolidated the scattered instructions on valuing this perquisite into a single statement of the exempt cases.
199. Valuation of perquisites in the form of reimbursement of medical expenses/provisions of medical facilities by an employer
1. In supersession of Circular No. 376, dated January 6,1984, Circular No. 445, dated December 31, 1985, Circular No. 481, dated February 20, 1987 and all other instructions on the subject, the Board have decided that the value of the perquisite arising by way of payment or reimbursement by an employer of expenditure on medical treatment incurred by his employee on himself or on his spouse, children or parents, including the provision of free medical treatment or treatment at a concessional rate, will not be included in the taxable salary of the employee in the following cases :
(i) Where the medical treatment is availed at hospitals, clinics, etc., maintained by the employer;
(ii) Where the medical treatment is availed of at hospitals maintained by the Government or local authorities or hospitals approved for the purposes of the Central Government Health Scheme or Central Medical Scheme (a list of such hospitals furnished by the Ministry of Health and Family Welfare on 11-4-1991 is annexed);
(iii) Where the expenditure is on medical insurance premia;
(iv) Where the medical treatment is availed of from any doctor outside the institutions/schemes mentioned in ( i) to (iii) above an expenditure of up to Rs. 10,000 in a year, in the aggregate; and
(v) Where the medical treatment is availed of in a hospital outside India and the expenditure is incurred for treatment (including on travel and stay abroad in connection with such treatment) as also on travel and stay abroad of one attendant, to the extent permitted by the RBI, subject to the condition that the amount qualifying for such tax exemption would not include expenditure incurred on travel in the case of employees whose gross total income, as computed under the Income-tax Act without considering the amount paid or reimbursed for expenditure in connection with medical treatment abroad, exceeds Rs. 1,00,000.
2. The contents of this circular will be applicable in relation to the assessment year 1991-92 and the subsequent years.
LIST OF HOSPITALS RECOGNISED UNDER CENTRAL GOVERNMENT HEALTH SCHEMEGovt. Hospital
Private Hospital
1.
Delhi
(For maternity cases only)
1.
Dr. R.M.L. Hospital
1.
Dr. B.L. Kapur Memorial Hospital, Pusa Road
2.
Safdarjang Hospital
2.
St. Stephen’s Hospital, Tees Hazari
3.
Smt. Sucheta Kripalani Hospital (Only for maternity and for staff working in the Hospital)
3.
Kasturba Hospital, near Jama Masjid
4.
CGHS Maternity and Gynae Hospital, R.K. Puram
4.
Girdhari Lal Maternity Hospital., Opposite Kamla Market, Ajmeri Gate
5.
CGHS Maternity Centre, Srinivaspuri
5.
Delhi Neurological Research Centre (for CT Scan)
6.
CGHS Maternity Centre, Kalkaji.
Private Hospital(For T.B. only)
7.
All Centres under New Delhi Municipal Committee (only for maternity cases)
6.
Lala Ram Swaroop TB Hospital, Mehrauli
8.
All Centres under MunicipalCorporation of Delhi (only for maternity cases)
7.
Rajan Babu TB Hospital, Kingsway Camp.
For By-Pass Surgery
9.
Badshah Khan Hospital, Faridabad.
8.
Escorts Heart Institute
9.
Batra Hospital
10.
Natural Heart Institute.
For General Cases
11.
Narinder Mohan Hospital, Mohan Nagar, Ghaziabad
2. Ahmedabad
1. Government Civil Hospital
2. Government Mental Hospital
3. Government TB Hospital
4. Government Dental Hospital
5. Sh. M.P. Shah Cancer Hospital (Government aided).
3. Allahabad
1. S.R.N. Hospital
2. M.L.N. Hospital
3. M.D. Eye Hospital
4. Dufferin Hospital
5. T.B. Sapru Hospital
6. Kamla Nehru Memorial Hospital
7. S.N. Children Hospital.
4. Bangalore
1. Bowring & Lady Curson
2. Central Leprosarium, Magadi Road
3. HSIS Gosha Hospital, Taskar Town
4. Isolation Hospital, Old Madras Road
5. Lady Willingdon & TB Demonstration Training Centre, K.G. Road
6. Minto Opthalmic Hospital, Albert Victoria Road
7. SDS Sanatorium, Hosur Road
8. T.B. Sanatorium, Old Madras Road
9. Vani Vilas Hospital, Krishnarajendra Road
10. Victoria Hospital
11. Sri Jayachamarajendra Institute of Indian Medicine, Tank Bund Road.Govt. Hosipital
Private Hosipital
5.
Bombay
1.
J.J. Hospital
1.
Bombay Hospital
2.
St. George Hospital
2.
Nanavati Hospital
3.
G.T. Hospital
3.
Radhibai Vatumal Sanatorium
4.
Cama Alblese Hospital
4.
Sarvodya Hospital
5.
N.M. Mental Hospital
5.
Tata Memorial Hospital
6.
Municipal Hospitals (three)
6.
Children Orthopaedic Hospital
7.
Railway Hospital
7.
National Hospital
8.
Naval Hospital
8.
Mangal Anand Hospital.
6.
Calcutta
1.
S.S.K.M. Hospital
1.
Bahela Hospital
2.
Medical College & Hospital
2.
Ramakrishna Mission Seva Pratishthan
3.
N.R.S. Medical College & Hospital
3.
Lumbini Park Mental Hospital
4.
R.G. Kar Medical College & Hospital
4.
Belle Vue Clinic
5.
Polyclinic at Subushan Hospital
5.
Heart Care Centre
6.
Diagnostic and Research Centre
6.
East India Clinic.
7.
National Medical College
8.
K.S. Roy T.B. Hospital
7.
Hyderabad
1.
Osmania General Hospital
1.
C.C. Shroff Hospital
2.
Gandhi Medical Hospital, Secundrabad
2.
Sagarlal Memorial Hospital
3.
E.N.T. Hospital
3.
Sai Ram Hospital
4.
Quarantine Fever Hospital
4.
Sharvana Nursing Home.
5.
Govt. Maternity Hospital
6.
Nizam Orthopaedic Hospital
7.
Niloufer Hospital
8.
Mental Hospital
9.
Cancer Hospital
10.
Osmania Dental College
11.
T.B. Hospital
12.
Sarojini Eye Hospital
13.
Govt. Ayurvedic Hospital
14.
Govt. Unani Hospital
8.
Jaipur
1.
Indian Red Cross Society Polyclinic (for tests only)
1.
S.M.D. Hospital
2.
S.M.S. Zanana T.B. and Mental Hospital
9.
Kanpur
1.
L.L.R. Hospital
2.
U.I.S.E. Hospital
3.
U.H.M. Hospital
4.
A.H.M. Hospital
5.
K.P.M. Hospital
6.
M.I. Chest Hospital
7.
J.K. Cancer Institute
8.
L.L.R. Cardiology Institute
10.
Lucknow
1.
Civil Hospital
1.
Ramakrishna Mission Vivekananda Polyclinic
2.
Balrampur Hospital
2.
U.P. Medical Center (for CT Scan)
3.
Medical College Hospital
11.
Madras
1.
Government Stanle, Medical College Hospital
1.
Public Health Centre
2.
Government Kilpauk Medical College Hospital
2.
Andhra Mahila Sabha Nursing Home
3.
Govt. General Hospital
3.
Cancer Institute.
4.
Govt. Royapettah Hospital
5.
Govt. Mental Hospital
6.
Govt. Opthalmic Hospital
7.
Govt. R.S.R.M. Hospital
8.
Govt. Kasturba Gandhi Hospital
9.
Govt. Thiruvatteswarar T.B. Hospital
10.
Govt. T.B. Sanatorium,Tambaram
11.
Govt. Chest Institute’s Tuberculosis Demonstration and Training Centre, Chetput
12.
Institute of Obstetric and Gynaecology and Hospital for Women and Children
13.
Institute of Child Health and Hospital for Children
14.
Govt. Homoeopathic Medical College and Hospital
15.
Govt. Peripheral Hospital, K.K. Nagar.
12.
Meerut
1.
P.L. Sharma Hospital
2.
Medical College Hospital
3.
Dufferin Hospital.
13.
Nagpur
1.
Medical College Hospital
1.
Mure Memorial Hospital
2.
Mayo General Hospital
2.
Matru Sewa Sangh Maternity Hospital
3.
Dental College and Hospital
3.
Gopikrishna Toori Neurological Clinic
4.
Mental Hospital.
4.
Rashtra Sant Tukdoji Cancer Hospital
5.
Nagpur Neurological Research Centre (for CT Scan).
14.
Patna
1.
Patna Medical College & Hospital
1.
Kurjee Holy Family Hospital.
2.
Nalanda Medical College & Hospital
3.
Patna City Govt. Hospital
4.
Rajendranagar Hospital.
15.
Pune
1.
Sasson General Hospital
1.
K.E.M. Hospital
2.
Anud Chest Hospital
2.
Ruby Hall Clinic
3.
Mental Hospital, Yerwada
3.
Hardikar Hospital
4.
N.M. Wadia Hospital
5.
Sencheti Hospital
6.
Joshi Hospital
7.
Sharda Clinic
8.
Colony Nursing Home
9.
Sanjeevan Hospital
10.
Poone Hospital and Research Centre
11.
Nature Cure Institute, Urli, Kanchan.
16. Referral Hospitals (with the approval of Director, CGHS):
1. All India Institute of Medical Sciences, New Delhi
2. G.B. Pant Hospital, New Delhi.
17. Specialised Hospitals (with the approval of Director, CGHS):
1. Tata Memorial Hospital, Bombay
2. C.M.C. Vellore (for Neurology)
3. Mental Hospital, Ranchi (Bihar)
4. Eyes Hospital, Sitapur (U.P.)
5. Railway Hospital, Perambur.
Circular : No. 603, dated 6-6-1991.
In a salary assessment or a section 201 proceeding where medical reimbursement was not brought to tax, particularly on a claim for treatment abroad.
Source: the Income Tax Department’s own published text — its page for this instrument.