Employer-funded medical expenses broadened to approved hospitals and direct payments; exemption limit increased and nursing homes included. The proviso to clause (2) is amended to treat as non-taxable sums paid by an employer for medical expenditure actually incurred by the employee or family members in government, local authority, or Government-approved hospitals, and sums paid directly to hospitals approved by the Chief Commissioner under prescribed guidelines for treatment of specified diseases; additionally, the monetary ceiling in clause (vi) is increased from one lakh rupees to two lakh rupees and 'or a nursing home' is inserted after 'or a clinic'.