Can anyone tell me if there is a ceiling for issuing Sodexho coupens for employees under FBT struture? In some companies there is no ceiling. Is it permitted as per law ? Also please do let me know what is the policy in your company.
Dear Sir,
FBT has been abolished now.
Further, the following limits are specified under the Income Tax Act.
Gift Vouchers: exempt from tax upto Rs. 5000/- per annum
Meal Vouchers: exempt upto Rs. 50/- per meal
The employer is at liberty to pay any amount. There is a restiction only on the amount that would be exempt from tax and any amount in excess would be chargeable to tax in the hand of the employee.
Hope this would help you.
Thanks & Regards,
Avika Kapoor
Manager – Business Development
Kapgrow Corporate Advisory Services Pvt. Ltd.
E-173, Kalkaji, New Delhi – 110019
011-40553774
09310270884
Hi,
In our company we are processing the food coupons, max limit Rs.3000 per month.
and this will be adjusted in total CTC, as food coupons, under annual benefit,so that this amount wont come under tax part.
Eg. basic is 10000, before opting food coupons, after that your basic will come down slightly, and HRA, also. and accordingly the PF and LTA, Performance bonus will also share this changes, but finally CTC wont change.
Regards
Rajanikanth.
Asst Manager-HR
Dear Friend,
Sodexo Pass Meal Coupns does not constitute earnings in the hands of the employee. Therefore it does noy come within the ambit of "Income" for Icome Tax purposes.
These Meal Coupons also do not attract FBT.
There is no fixed limit for issuing Meal Coupons. However, the amount so allowed should not appear to be unreasonable and a blatant/obvious was of avoiding Tax.
A sum of Rs.5000/- at Senior levels, and proportionately reduced amounts down the line, would be reasonable entitlements.
Best Wishes,
Vasant Nair
In our company we have a limit of Rs.2200/- per month for sodhexo coupons, we go with the following logic:
Rs. 50/- per meals x by 2 meals in a day = Rs. 100/- per day.(a)
Multiply (a) by 22 working days, makes it Rs. 2200/- per month.
Hope this sufficies your query
Regds
Preeti
In our company, we issue the sodexo's for Rs.3,250/- (125*26 days) per month as upper limit.
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