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(1)If Employer pays for Medical treatment of Employee or his family member, it is exempt to the extent permitted by RBI.

(2)Expenses on stay of patient and one attendant is also exempt to the extent permitted by RBI.

(3) If expenses on Travel paid by Employer , then it is exempt if  Gross Total Income of employee (Without Including travel Expenditure) is up to 2 lacs .

 

Medical Treatment Outside India - Taxability of Perquisites

QUESTIONS

Q1

Employee received Basic Salary OF 240000(20000 pm)

He was sent for medical treatment out of country

He incurred following expenses which were reimbursed by company

Expense Name Amt reimbursed
Cost of Medical Treatment 100000
Cost of Stay 80000
Cost of Travel 30000

As per RBI,70000 for medical treatment and 60000 for stay is exempt

He had interest income of 5000 on FD

Calculate Income from Salaries and GTI

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Q2

Solve Q1 assuming his Basic Salary is 120000(10000 p.m)

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  1. Income Tax
  2. Income from Salaries
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About the Author

CA Maninder Singh's photo - Expert in Practical Accounts, Taxation and Efiling
CA Maninder Singh
CA Maninder Singh is a Chartered Accountant for the past 8 years. He provides courses for Practical Accounts, Taxation and Efiling at teachoo.com .
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