Is There a Limit on Annual Sodexo Gift Vouchers for Employees? Seeking Your Insights

Hi All,

I would like to know if there is any cap on the amount (per annum) for providing either Sodexo Gift Vouchers or Ticket Compliments to an employee. I understand from our company finance team that our Auditors suggested maintaining the cap at Rs. 2500 per month.

Your inputs on this are very valuable and useful.

Thanks,
Anil

Dear Anil,

The cap that was suggested is right. It's basically Rs.100/- per day towards food expenses for 25 working days. You may increase it to say Rs.120/- per day to make it a maximum of Rs.3000/- per month, but do not exceed as it will not be justified.

Regards,
Harshad

Dear Anil,

Just to add to what I mentioned, the limit or cap should be level-wise. For example, a person earning, say, Rs. 8000/- per month will not have the maximum limit as it will not be justified. Therefore, the limit should be level-wise.

Regards,
Harshad

Hi Harshad,

Thank you very much for providing such valuable information. I believe you are referring to Sodexo meal vouchers. I would like to request more information about Sodexo gift vouchers/ticket compliments.

Thank you,
Anil

Hi,

Can anyone clarify regarding the cap for Sodexo meal pass? I learned from people that there is no such limit. It is left to the organization to set their limits. If there are any legal clauses applicable, please let me know.

Thank you.

Hi,

There is no specific limit as it is part of the company policy - the compensation structure of the organization, but an amount between Rs. 100 to Rs. 120 is justified.

To avail income tax benefit, it is a maximum of Rs.50 per working day, i.e., Rs.1250 per month, beyond which it is taxable under IT.

Regards,
Srikanth

This food coupon scheme is part of CTC, which can be availed as tax-free. The coupons can be exchanged for groceries or hotels for purchase. The maximum cap is as per the level of CTC. I understand that the maximum is 5400/- per month as tax-free.