13 March 2008
If an employee receives some money for his medical treatment or the treatment of any member of his family or any of his dependant relatives then a sum up to Rs. 15,000 p.a. is not treated as a taxable perquisite as per Clause (b) of the provision to Section 17 (2) of the I.T. Act. This exemption is enjoyed by the employee only if the expenditure is actually incurred on his medical treatment or for treatment of any member of the family or a dependant relative. It may be noted here that there is no condition that the medical treatment should be at any of the approved hospitals. It could be at any place and from any type of doctor belonging to Allopathic, Ayurvedic, Unani or Naturopathy system of medicine.
13 March 2008
SEC 17 (2 ) ALLOWS MEDICAL EXP. REIMBURSED AGAINST BILLS AS EXEMPT INCOME AND TAX FREE UPTO RS 15000 P.A . BUT BILLS SHOULD RELATE TO THE FIN. YEAR FOR WHICH THE EXEMPTION IS CLAIMED. R.V.RAO
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