INCOME TAX

Section 17 of the Income-tax Act, 1961--Valuation of perquisites in the form of reimbursement of medical expenses/provision of medical facilities by an employer

Circular No. 603

Dated 6/6/1991

In supersession of Circular No.376 dated January 6, 1984 (See [1984] 146 ITR (St.) 62), Circular No. 445 dated December 31, 1985 ([1986] 157 ITR (St.) 49), Circular No. 481 dated February 20, 1987 (See [1987] 165 ITR (St.) 225), and all other instructions on the subject, the board have decided that the value of the perquisites 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 of 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) aboe, 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 a abroad of one attendant, to the extent permitted by the Reserve Bank of India, 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.

(Sd.) V.V. Prasad,

Deputy Secretary to the Government of India

List of hospitals recognised under Central Government

health scheme

Govt. Hospital		Private Hospital
1.	Delhi	(For maternity cases only)
	1.  Dr. R.M.L. Hospital	1.  Dr. B.L. Kapur Memorial Hospital, Pusa Road
	2.  Safdarjang Hospital
	3.  Smt. Sucheta Kripalani Hospital (Only for maternity and for staff working in the Hospital)	2.  St. Stephen's Hospital, Tees Hazari
		3.  Kasturba Hospital, near Jama Masjid
	4.  CGHS Maternity and Gynae Hospital, R.K. Puram	4.  Girdhari Lal Maternity Hospital., Opposite Kamla Market, Ajmeri Gate
	5.  CGHS Maternity Centre, Srinivaspuri	5.  Delhi Neurological Research Centre (for CT Scan
	6. CGHS Maternity Centre, Kalkaji.	6.  Lala Ram Swaroop TB Hospital, Mehrauli
	7.  All Centres under New Delhi Municipal Committee (only for maternity cases)	7.  Raja Babu TB Hospital Kingsway Camp
	8.  All Centres under Municipal Corporation of Delhi (only for maternity cases)	For By-Pass Surgery
		8.     Escorts Heart Institute
	9.  Badshah Khan Hospital, Faridabad	9.  Batra Hospital
		10.  Natural Heart Institute.
		For General Cases
		11.       Narinder Mohan Hospital, Mohan Nagar, Ghaziabad.
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.
5	Bombay
	1.  J.J. Hospital	1.  Bombay Hospital
	2.  St. George Hospital	2.  Nanavati Hospital
	3.  G.T. Hospital	3.  Radhibai Vatumal Sanatorium
	4.  Cama Alblese Hospital	4.  Sarvodaya Hospital
	5.  N.M. Mental Hospital	5.  Tata Memorial Hospital
	6.  Municipal Hospitals (three)	6.  Children Orthopaedic Hospital
	7.  Railway Hospital	7.  National Hospital
	8.Naval Hospital	8.  Mangal Anand Hospital.
6	Calcutta
	1.  S.S.K.M. Hospital	1.  Bahela Hospital
	2.  Medical College & Hospital	2.  Ramakrishna Mission Seva Pratishthan
	3.  N.R.S. Medical College & Hospital	3. Lumbini Park Mental Hospital
	4.  R.G. Kar Medical College &Hospital	4. Belle Vue Clinic
		5. Heart Care Centre
	5.  Polyclinic at Subushan Hospital	6. East India Clinic.
	6.  Diagnostic and Research Centre
	7. National Medical College
	8.  K.S. Roy T.B. Hospital
7	Hyderabad
	1.  Osmania General Hospital	1.C.C. Shroff Hospital
	2.  Gandhi Medical Hospital, Secunderabad	2.Sagarlal Memorial Hospital
	3.  E.N.T. Hospital	3.Sai Ram Hospital
		4.Sharvana Nursing Home.
	4.  Quarantine Fever Hospital
	5.  Govt.  Maternity Hospital
	6.  Nizam Orthopaedic Hospital
	7.  Niloufer Hospital
	8.  Mental Hospital
	9.  Cancer Hospital
	10.  Osmania Dental College
	11.  T.B. Hospital
	12.  Sarojini Eye Hospital
	13.  Govt. Ayurvedic Hospital
	14.  Govt. Unani Hospital
8	Jaipur
	1.  Indian Red Cross Society Polyclinic (for tests only)	1  .S.M.D. Hospital
	2.  S.M.S. Zanana T.B. and Mental Hospital
9	Kanpur
	1.  L.L.R. Hospital
	2.  U.I.S.E. Hospital
	3.  U.H.M. Hospital
	4.  A.H.M. Hospital
	5.  K.P.M. Hospital
	6.  M.I. Chest Hospital
	7.  J.K. Cancer Institute
	8.  L.L.R. Cardiology Institute
10	Lucknow
	1.  Civil Hospital	1.  Ramakrishna Mission Vivekananda Polyclinic
	2.  Balrampur Hospital	2  .U.P. Medical Center (for CT Scan)
	3.  Medical College Hospital.
11.	Madras
	1. Government Stanle, Medical College Hospital	1.  Public Health Centre
		2  Andhra Mahila Sabha Nursing Home
	2.  Government Kilpauk Medical Home College Hospital	3.  Cancer Institute.
	3  Govt. General Hospital
	4.  Govt. Royapettah Hospital
	5.  Govt. Mental Hospital
	6.  Govt. Opthalmic Hospital
	7.  Govt. R.S.R.M. Hospital
	8.  Govt. Kasturba Gandhi Hospital
	9.  Govt. Thiruvatteswarar T.B. Hospital
	10.  Govt. T.B. Sanatorium, Tambaram
	11.  Govt. Chest Institute's Tuberculosis Demonstration and Training Centre, Chetput
	12.  Institute of Obstetric and Gynaecology and Hospital forWomen and Children
	13.  Institute of Child Health and Hospital for Children
	14.  Govt. Homoeopathic Medical College and Hospital
	15.  Govt. Peripheral Hospital, K.K. Nagar.
12	Meerut
	1.  P.L. Sharma Hospital
	2.  Medical College Hospital
	3.  Dufferin Hospital.
13	Nagpur
	1.  Medical College Hospital	1.  Mure Memorial Hospital
	2.  Mayo General Hospital	2.  Matru Sewa Sangh Maternity Hospital
	3.  Dental College and Hospital	3.  Gopikrishna Toori Neurological Clinic
	4.  Mental Hospital.
		4.  Rashtra Sant Tukdoji CancerHospital
		5.  Nagpur Neurological Research Centre (for CT Scan).
14.	Patna
	1.  Patna Medical College & Hospital	1.  Kurjee Holy Family Hospital
	2.  Nalanda Medical College & Hospital
	3.  Patna City Govt.  Hospital
	4.  Rajendranagar Hospital.
15	Pune
	1. Sasson General Hospital	1.  K.E.M Hospital
	2. Anud Chest Hospital	2.  Ruby Hall Clinic
	3. Mental Hospital, Yerwada	3.  Hardikar Hospital
		4. N.M. Wadia Hospital
		5. Sencheti Hospital
		6. Joshi Hospital
		7.  Sharda Clinic
		8. Colony Nursing Home
		9. Sanjeevan Hospital
		10. Poone Hospital and Research Centre
		11. Nature Cure Institute, Urli,Kanchan.

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.