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What is the “CBDT Tax 17(2)(ii)(b)” Income Tax Exemption certificate for hospitals?


It is a Must-have Certificate if your Hospital is planning to enter into any Corporate tie-ups. Under this certification, the said sum shall be exempt from Income Tax in the hands of the employee provided he/she attaches with his/her return of income a certificate from the said hospital specifying the disease or ailment for which medical treatment was required and the receipt for the amount paid to the hospital.

While granting the approval for this certification to any hospital (with a minimum of 10 beds) for the Indian system of medicine for the purposes of sub-clause (b) of clause (ii) of the proviso to sub-clause (vi) of clause (2) of section 17, the Chief Commissioner shall satisfy himself that the hospital fulfills the conditions specified vide Office Memorandum dated the 6th June 2002, by the Department of Indian Systems of Medicine, Ministry of Health and Family Welfare for approval of private hospitals for Indian system of medicine and homeopathic treatment to Central Government Health Scheme beneficiaries and Central Government employees.

For the purpose of 17(2)(ii)(b), only the following diseases or ailments will be considered for exemption:

  • cancer;
  • tuberculosis;
  • acquired immunity deficiency syndrome;
  • disease or ailment of the heart, blood, lymph glands, bone marrow, respiratory system, central nervous system, urinary system, liver, gallbladder, digestive system, endocrine glands or the skin, requiring surgical operation;
  • ailment or disease of the eye, ear, nose or throat, requiring surgical operation;
  • fracture in any part of the skeletal system or dislocation of vertebrae requiring surgical operation or orthopedic treatment;
  • gynecological or obstetric ailment or disease requiring a surgical operation, cesarean operation or laparoscopic intervention;
  • ailment or disease of the organs mentioned at (d), requiring medical treatment in a hospital for at least three continuous days;
  • gynecological or obstetric ailment or disease requiring medical treatment in a hospital for at least three continuous days;
  • burn injuries requiring medical treatment in a hospital for at least three continuous days;
  • mental disorder - neurotic or psychotic - requiring medical treatment in a hospital for at least three continuous days;
  • drug addiction requiring medical treatment in a hospital for at least seven continuous days;
  • anaphylactic shocks including insulin shocks, drug reactions and other allergic manifestations requiring medical treatment in a hospital for at least three continuous days.

If you want to get a certificate for your hospital, then “Shreeji Healthcare Consultancy” is ready to help you along every step of the process.

Get in touch via 6354721824
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