Circular No: 481-Income Tax Attention is invited to the Board’s Circular No. 445 (F. No. 200/177/84-IT(AI)) dated 31-12-1985,* wherein it was laid down that the reimbursement by the employer of medical expenses, such as, operation fee, hopitalisation charges and cost of medicines, tests, etc., actually incurred in India by the employee on medical treatment in a recognised public hospital will not be treated as perquisite
