Income Tax Benefits on Medical Insurance by Employer | H&R Block

Income Tax Benefits on Medical Insurance Provided by the Employer

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Income Tax Benefits on Medical Insurance Provided by the Employer

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Many of the medical facilities and benefits provided by the employer are exempt from tax. Medical facilities provided by the employer are a big relief for employees and their families. In this article we explain when and to what extent medical facilities provided to the employee are exempt from tax.
Medical facilities are one of the benefits enjoyed by salaried employees.  Medical benefits provided to the employee are exempt from tax, regardless of the employer bearing its expenses.

Follow these rules & tips for Income Tax benefits on medical insurance/ facilities provided by the employer-

  1. Insurance premium paid by employer for a group health plan established or maintained by the employer is not taxable as salary.
  2. Amount spent on treatment of employee in hospital maintained by the employer is exempt from tax.
  3. Amount spent or reimbursed by employer for treatment in hospital maintained by the central government, state government or local authority is exempt from tax.
  4. Reimbursement of up to Rs. 15,000/-, spent by the employee for medical treatment in a private clinic, is exempt from tax.
  5. Amount spent by the employer for treatment of an employee or his family member outside India is exempt from tax. This exemption is subject to permissible limits set by the RBI.
  6. If income of a employee does not exceed Rs. 2,00,000/-, cost spent on foreign travel for medical treatment is exempt from tax.

Cost spent by employer towards overseas stay for medical treatment is exempt from tax. This exemption is subject to permissible limits set by the RBI.

H&R Block India strives to blend tax expertise with a strong focus on continually improving the client experience to provide all its clients with an unparalleled value proposition for E filing their Income Tax Returns Online.

HRBlockIndia
HRBlockIndia
H&R Block India strives to blend tax expertise with a strong focus on continually improving the client experience to provide all its clients with an unparalleled value proposition for filing their Income Tax Online.

4 Comments

  1. Tribhuvan says:

    employer pay insurance premium of family members of employee under group insurance plan. is such a premium for the family members allowed as business expenditure? And whether the same should be treated as perquisite in the hands of employee? If allowed kindly also provide the proof.

  2. VIJENDRA says:

    I am salary Employee , Group Mediclaim Policy of United India Insurance Co. Ltd. has been taken on behalf of my company . Whether Premium under this Policy deducted from my salary by my Employer , is deductible u/Sec 80D?

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