Circular No. 603-Income tax dated 6-6-1991

 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 SCHEME

     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.

   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.