Medical Facility perquisite
The taxable value when your employer pays for medical treatment — in India or abroad (section 17(2)).
Switch calculator — current: Medical facility perquisite
Your details
A director, a >20% shareholder, or an employee earning over ₹50,000 a year.
Your answer
₹ —
Still needed: the medical expenditure.
- The figure, and how it compares where there is a choice
- Every step of the working, line by line
- The exact sections, with links to read them
For guidance only — not tax advice. Every figure is drawn from BharatX’s verified rule book, with the sections and rules shown alongside it.
Medical facility perquisite: how it works and FAQs
FY 2025-26 (Income-tax Act 1961) and FY 2026-27 (Income-tax Act 2025) · Updated
How it works
When your employer pays for your medical treatment, part of it can be a taxable perquisite.
When your employer pays for your medical treatment, part of it can be a taxable perquisite. For treatment in India, the taxable value is the expenditure less anything you repaid. For treatment abroad, the cost above the RBI-permitted amount is taxable, and the travel cost is taxable only if your gross total income is over the threshold.
- In India: perquisite = max(0, medical expenditure − amount recovered from you).
- Outside India (only when gross total income is entered): medical cost above the RBI-permitted amount is taxable.
- Outside India: travel cost is exempt if gross total income is within the threshold (₹2,00,000; ₹8,00,000 for AY 2026-27), otherwise fully taxable.
- Perquisite = max(0, taxable medical + taxable travel − amount recovered).
Worked example
Taxable perquisite = ₹30,000. (If income were over the threshold, travel of ₹30,000 would be added → ₹60,000.)
Treatment abroad: expense ₹1,00,000, RBI-permitted ₹70,000, travel ₹30,000, gross total income ₹1,50,000 (within the threshold).
- Taxable medical = 1,00,000 − 70,000 = ₹30,000.
- Travel = ₹0 (income within threshold).
Taxable perquisite = ₹30,000. (If income were over the threshold, travel of ₹30,000 would be added → ₹60,000.)
Frequently asked questions
Is employer-paid medical treatment taxable?
In India it is a perquisite equal to what the employer paid, less any amount you repaid. Treatment abroad is taxed only above the RBI-permitted cost.
When is overseas travel for treatment exempt?
When your gross total income is within the threshold (₹2,00,000; ₹8,00,000 for AY 2026-27). Over that, the travel cost becomes fully taxable.
Every figure the calculator shows lists the sections it relies on under “Legal basis”. For guidance only — not tax advice.