Medical Reimbursements made by the employer to employee exceeding Rs. 15,000 p.a. are considered as perquisite and taxable u/s 17(2). Provisions relating to determination of value of perquisites have been explained in Section 17(2) and Rule 3.
Proviso (v) to Section 17(2)(viii) stipulates as under:
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 Section 17(2)(i) and (ii); so, however, that such sum does not exceed fifteen thousand rupees in the previous year;