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Unit 7: Income under the Head Salaries

(ii) any sum paid by the employer in respect of any expenditure actually incurred by the Notes
employee on his medical treatment or treatment of any member of his family:
(a) in any hospital maintained by the Government or any local authority or any
other hospital approved by the Government for the purposes of medical
treatment of its employees;

(b) in respect of the prescribed diseases or ailments, in any hospital approved by
the Chief Commissioner having regard to the prescribed guidelines:
Provided that, in a case falling in sub-clause (b), the employee shall attach with his
return of income a certificate from the hospital specifying the disease or ailment for
which medical treatment was required and the receipt for the amount paid to the
hospital;
(iii) any portion of the premium paid by an employer in relation to an employee, to
effect or to keep in force an insurance on the health of such employee under any
scheme approved by the Central Government or the Insurance Regulatory and
Development Authority established under sub-section (1) of section 3 of the Insurance
Regulatory and Development Authority Act, 1999 (41 of 1999),] for the purposes of
clause (ib) of sub-section (1) of section 36
(iv) any sum paid by the employer in respect of any premium paid by the employee to
effect or to keep in force an insurance on his health or the health of any member of
his family under any scheme approved by the Central Government or the Insurance
Regulatory and Development Authority established under sub-section (1) of section
3 of the Insurance Regulatory and Development Authority Act, 1999 (41 of 1999), for
the purposes of section 80D

(v) any sum paid by the employer in respect of any expenditure actually incurred by the
employee on his medical treatment or treatment of any member of his family [other
than the treatment referred to in clauses (i) and (ii)]; so, however, that such sum does
not exceed fifteen thousand rupees in the previous year;
(vi) any expenditure incurred by the employer on:

(a) medical treatment of the employee, or any member of the family of such
employee, outside India;
(b) travel and stay abroad of the employee or any member of the family of such
employee for medical treatment;
(c) travel and stay abroad of one attendant who accompanies the patient in
connection with such treatment, subject to the condition that—
the expenditure on medical treatment and stay abroad shall be excluded
from perquisite only to the extent permitted by the Reserve Bank of
India; and
the expenditure on travel shall be excluded from perquisite only in the
case of an employee whose gross total income, as computed before
including therein the said expenditure, does not exceed two lakh rupees;
(vii) any sum paid by the employer in respect of any expenditure actually incurred by the
employee for any of the purposes specified in clause (vi) subject to the conditions
specified in or under that clause:

Provided further that for the assessment year beginning on the 1st day of April,
2002, nothing contained in this clause shall apply to any employee whose income

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