Hospital approval for perquisite exclusion allows employer-paid medical expenses at approved hospital to be non-perquisite under income tax rules. Approval is accorded to M/s Shri Sai Hospital under sub-clause (b) of clause (ii) of the proviso to clause (viii) of sub-section (2) of section 17 of the Income-tax Act, 1961 read with Rule 3A(1) and 3A(2), permitting employer-paid medical expenses for specified diseases or ailments at the approved hospital to be excluded from perquisite treatment under sections 15, 16 and 17, subject to non-transferability, exclusion of Indian systems/homeopathy, inspection, continued statutory compliance, and possible modification or withdrawal for misrepresentation or failure to meet conditions.