Hi
Is medical re-imbursement & conveyance allowance paid on Pro rata basis?
For eg. employee joins on 20-Jan-14, is he eligible for full amount of 800/- conveyance allowance & 1250/- medical re-imbursement or should that be calculated and paid for the number of days worked?

From India
manjula: all componenrts of salary are paid on pro rata basis only.
From India, Mumbai
There is a difference bet'n Medical Reimbursement and Medical Allowance. The limit Rs.1250/- p.m. is medical allowance and it may be a part of gross salary/CTC. To avail tax exemption, one has to produce the bills. Otherwise, it will be taxable.
On the other hand, some Cos/PSUs follow the practice of medical reimbursement and it can be claimed only after production of bills. The limit of claim is prescribed cadre wise. There may be two type reimbursements, domiciliary and hospitalisation. Now, most of the Cos are covering their employees under mediclaim policies for hospitalisation expenses.
Pon, Chennai

From India, Lucknow
PON is right. If conveyance allowance and medical reimbursement are paid regularly every month as part of salary, they can be paid on prorata basis. If they are paid to reimburse actual expenses incurred on the basis of the bills, they cannot be paid on prorata basis.
B.Saikumar
Navi mMumbai

From India, Mumbai
Dear All, Hi i am new here pls forgive me if any mistake done by me Please anyobody tell me what is prorata basis Bhavan michal
From India, Mumbai
Greetings Bhavan michal,
Feel free to seek clarifications in this forum there is no need to feel sorry for seeking explanation on a matter.
Pro rata basis means that if an employee earns say Rs.3000/- as an allowance for the whole of the month and if the employee has joined on 20th January 2014, the number of calendar days in the January 2014 being 31 days. To compute pro rata eligibility you have to compute as follows
Rs.3000/ 31 days = Rs.96.77/ day X 12 days (31 days - 19 days as he is eligible for the allowance for 12 days, date of joining being 20th January 2014) = Rs.1161/-
Hence, for January 2014 he will be eligible for Rs.1161/-. The same methodology needs to be followed by you for calculating Loss of Pay also.
Trust the matter is clarified
Regards

From India, Madras
Dear M.V.Kannan,
Hats off to you great answer and great support.
We are here in this forum to learn only. Learner should not say "SORRY".
CHEERS. Keep sharing the views and experience.
Warm regards
Ramakant

From India, Pune
Sir(s)
if the person have salary of rs. 40000, as per appointment letter he basic pay is 40% of CTC, transport allowance 800 PM, medical reimbursement -1250 pm.
he also paying rent in delhi.
i want to know the % of HRA allow by co. and the break up of balance amount in salary.
Regards
Harsh

From India, New Delhi
Hi,
if a person has a lop of 2 days then should we do lop in Conveyance & Medical Allowance as it has a standard value of Rs.800/- and Rs.1250/- respcectively. Also please clarify whether any clause has been given by Income Tax Department on this.
Regards,
Gajendra

From India, Bangalore

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