Can Employees Claim Full Rs. 15,000 Medical Allowance if They Leave Mid-Year?

I have a query regarding the Rs. 15,000 tax-free medical allowance for employees. If an employee leaves an organization in the middle of the year after having submitted medical bills of Rs. 15,000, should the organization only allow him the medical allowance for the period that he worked, or is it okay to allow the entire amount, provided the employee gives an undertaking that no more medical allowance is applicable during that financial year?

Our finance team is insisting that we credit only the period for which the employee has served.

Regards,
Riten

If he or she has worked for 6 months, then see his payroll bifurcation of Medical reimbursement. If it is more than 15k, then accept it. If it is below 15k, then reimburse the total up to 6 months of Medical reim.

Thanking you,
Regards,
Ashish

Rs. 15,000 is for the whole year. For a part period, apply pro-rata.

Pon

Medical Allowance vs. Medical Reimbursement

Is it a medical allowance or medical reimbursement? If it is a medical allowance, then a pro-rated allowance is payable by the company to the employee, taking into account the number of months he/she has served during the calendar year/financial year (depending upon company policy). For reimbursement, the same criteria could be applied.

Thanks,
R K Nair