Dear All,
I request your assistance regarding the policy on LTA and Medical Allowance. We have a provision to provide LTA and Medical benefits after the completion of 1 year. I kindly seek your advice on whether an employee who has completed 1 year and 8 months with the company is entitled to receive LTA and Medical benefits for the additional 8 months at the time of full and final settlement.
Please provide guidance as my company is currently not permitting the release of these benefits, stating that claims must be made on a yearly basis.
Regards,
Rachna
From India, Delhi
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10I request your assistance regarding the policy on LTA and Medical Allowance. We have a provision to provide LTA and Medical benefits after the completion of 1 year. I kindly seek your advice on whether an employee who has completed 1 year and 8 months with the company is entitled to receive LTA and Medical benefits for the additional 8 months at the time of full and final settlement.
Please provide guidance as my company is currently not permitting the release of these benefits, stating that claims must be made on a yearly basis.
Regards,
Rachna
From India, Delhi
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During the Full & Final Settlement Process, the employee is entitled to the LTA and Medical Allowance. In that case, the prorated amount for the number of months the employee has served with the company for the financial year has to be disbursed to the employee.
If your company has the procedure of releasing the Medical Allowance Amount only on submission of medical bills by the respective employees, then the company should reimburse the medical allowance amount only if the employees have submitted the bills to the concerned HR during the F&F process. However, the Pay elements, namely LTA and Medical Allowance, are taxable. Hence, upon prior submission of the concerned bills (if furnished), the employee is exempted from tax deductions.
Regards,
Vidyaa V
From India, Madras
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If your company has the procedure of releasing the Medical Allowance Amount only on submission of medical bills by the respective employees, then the company should reimburse the medical allowance amount only if the employees have submitted the bills to the concerned HR during the F&F process. However, the Pay elements, namely LTA and Medical Allowance, are taxable. Hence, upon prior submission of the concerned bills (if furnished), the employee is exempted from tax deductions.
Regards,
Vidyaa V
From India, Madras
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Thanks a ton vidya for the reply, means we should provide the LTA and Medical for that 8 months as well, whether the individual has submitted it for an year or not.
From India, Delhi
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From India, Delhi
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Yes, He is eligible for LTA and Medical for 8 months. Simply calculate LTA & Medical for one month and multiply with 8. Dev Agarwal
From India, Faridabad
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From India, Faridabad
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Dear all,
Please confirm whether LTA and other monthly reimbursements are also taxable. If yes, on what basis should it be done? Kindly provide the correct example or relevant documentation for the same.
Best Regards,
Rama Chandra Rao K
Manager - HR & Facilities
From India, Hyderabad
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Please confirm whether LTA and other monthly reimbursements are also taxable. If yes, on what basis should it be done? Kindly provide the correct example or relevant documentation for the same.
Best Regards,
Rama Chandra Rao K
Manager - HR & Facilities
From India, Hyderabad
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