Health · perquisite
Group medical insurance
Premium paid by your employer for group health cover is not treated as a perquisite.
How the taxable value is determined
Employer-paid premium on health insurance for employees is specifically excluded from perquisite value; it is not added to your taxable salary in either regime.
Regime availability
- Old regime
- Available
- New regime
- Available
Documentation to keep
Policy schedule naming the employer as proposer.
Legal basis: Proviso to Section 17(2), Income-tax Act
Frequently asked questions
Is group medical insurance taxable in India?
Premium paid by your employer for group health cover is not treated as a perquisite. Employer-paid premium on health insurance for employees is specifically excluded from perquisite value; it is not added to your taxable salary in either regime.
Does the exemption apply under the new tax regime?
Under the old regime this treatment is available; under the new regime it is available. Legal basis: Proviso to Section 17(2), Income-tax Act.
What records should I keep for group medical insurance?
Policy schedule naming the employer as proposer.
Related tools & guides
Reflects provisions in force for FY 2026-27; verify against the latest government publications (incometax.gov.in). Information, not tax advice.