Reimbursement of medical expenses on treatment in recognised public hospital in India-Clarification regarding - Income Tax - 481/1987

Reimbursement of medical expenses on treatment in recognised public hospital in India-Clarification regarding Circular No. 481 Dated 20/2/1987 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 for the purpose of charging income-tax. Representations have been received by the Board seeking clarification as to the import of the term "recognised public hospital" as used in the said circular. 2. It has been decided in consultation with the Ministry of Health and Family Welfare that the "recognised public hospital" would mean those hospitals which are recognised under CGHS and CS(MA) Rules for the purpose of medical treatment/reimbursement under these rules. Hindi version will follow shortly. (Sd.) K.K. Tripathi, Secretary, Central Board of Direct Taxes.